A depreciation method that produces larger depreciation expense during the early years of an asset's life and smaller expense in the later years is a(an):
A) Accelerated depreciation method.
B) Carrying amount depreciation method.
C) Straight-line depreciation method.
D) Units-of-production depreciation method.
E) Unrealized depreciation method.

Question

Quizplus · Accepted Answer

An accelerated depreciation method produces larger depreciation expenses during the earlier years of an asset's life and smaller expenses in the later years. This method recognizes that assets typically experience more wear and tear in the early years, and their productivity or usefulness decreases over time. Examples of accelerated depreciation methods include the double-declining balance method and the sum-of-years-digits method.

A Depreciation Method That Produces Larger Depreciation Expense During the Early