Which Depreciation Method Will Result in the Most Total Depreciation

question 63

Multiple Choice

Which depreciation method will result in the most total depreciation expense being recognized over a depreciable asset's entire life?

• A)the straight-line method
• B)the double-declining balance method
• C)the activity (units-of-production)method
• D)All three of these methods report the same total depreciation expense over the asset's life.

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Definitions:

Voting Shares

Securities affording the owner the ability to vote on important company decisions, including who gets elected to the board.

IAS 36

An International Accounting Standard that prescribes the procedures for accounting for impairments of assets.

Amortized

The gradual reduction of a debt or capital cost over a period, especially through regular payments covering interest and part of the principal.

Intangible Assets

Non-physical assets owned by a business, such as patents, trademarks, copyrights, and goodwill, which have economic value due to their rights or advantages in business operations.