The diminishing balance method gives a higher charge in which years?
AEarlier years of life
BLater years of life
COnly the final year
DEvery year equally
Answer & Solution
Correct answer: A. Earlier years of life
It charges an accelerated rate on the non-depreciated balance in the earlier years of the asset's life.
Keep practising Depreciation and Amortisation
Browse all Depreciation and Amortisation questions for CA Foundation, or explore more Accounting topics.
Related questions
How does depreciation expense affect the reported net income?Depletion is most used in which group of industries?Depletion is the using up of natural resources by which activity?Cost depletion allocates the cost of a resource in proportion to what?Pooling of similar assets bought in one year helps tax systems to?Buildings are generally given what depreciable lives under tax systems?For tax depreciation, bare land generally receives?A tax system that allows a fixed percentage of cost each year is called?