PRC-2 · Chapter 2 · Question 43 of 45
In the 'Reducing Balance' method of depreciation, more depreciation is charged in:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The earlier years of the asset's life.
Explanation
Because the rate is applied to the book value (which is highest at the start), the absolute depreciation expense is largest in year 1 and decreases over time.
More Coordinate System and Its Application MCQs
- Q45A 'Sinking Fund' is established primarily to:
- Q1What is the term for a group of numbers used to indicate the exact position of a point or a line in a space of given dimensions?
- Q2If a point B is plotted at coordinates (12, 18), what does the number 12 represent?
- Q3What is the slope of the straight line defined by the equation y = 5 - 4x?
- Q4If a straight line has a slope of 2, what is the slope of a line that is perfectly perpendicular to it?