Depreciation is higher and income is lower in the short run when using accelerated versus straight-line methods.

Question

Quizplus · Accepted Answer

Accelerated depreciation methods allow for a higher proportion of depreciation expenses to be recognized in the early years of an asset's life, leading to higher depreciation and lower income in the short run compared to straight-line depreciation which spreads out the depreciation expense evenly over the asset's life.

Depreciation Is Higher and Income Is Lower in the Short