Question on: SS1 Accounting - Depreciation Account: Diminishing or Reducing Balance Method: Meaning, Formula, And Preparation
What is the assumption made when using the reducing balance method of depreciation?
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A
The asset depreciates at an equal rate over its useful life
B
The asset depreciates at a faster rate in the early years of its useful life and at a slower rate in the later years
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C
The asset depreciates at a slower rate in the early years of its useful life and at a faster rate in the later years
D
The asset has no salvage value at the end of its useful life
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Correct Option: B
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