If management wanted to show an increasing income over the life of an asset which method of depreciation should they choose?
A)capital cost allowance
B)declining-balance
C)units-of-activity
D)straight-line

Question

Quizplus · Accepted Answer

The declining-balance method of depreciation results in higher depreciation expense in the early years of an asset's life and lower expense in the later years. This method can lead to an appearance of increasing income over time as the depreciation expense decreases each year, assuming constant or increasing revenue.

If Management Wanted to Show an Increasing Income Over the Life