When Comparing the Straight-Line and the Reducing-Balance Methods of Depreciation

question 24

Multiple Choice

When comparing the straight-line and the reducing-balance methods of depreciation, in the later years of the asset's life the depreciation charge using the straight-line method will be:

• A) smaller.
• B) greater.
• C) the same.
• D) do not have enough information.

---

Definitions:

Exchange Rate

The amount one currency is worth in the terms of another for conversion purposes.

C$

A symbol often used to denote the Canadian dollar, the currency of Canada.

Euro

The official currency of the eurozone, which consists of 19 of the 27 European Union member states.

Exchange Rate

The price or value of one currency in terms of another, determining how much of one currency can be exchanged for another.