Asked by Tyrin Davis on May 14, 2024
Verified
The depreciation rate for the double declining balance method is double the straight-line rate.
Double Declining Balance
A method of accelerated depreciation which doubles the straight-line depreciation rate, resulting in higher depreciation expenses in the early years of an asset's life.
Depreciation Rate
The rate at which an asset's value is reduced over time for accounting and tax purposes.
- Acquire knowledge on depreciation and amortization principles applicable to enduring assets.
Verified Answer
WH
Ward, Hannah Grace - SPEARMAN ELEMEN TeacherMay 20, 2024
Final Answer :
True
Explanation :
The double declining balance method has a depreciation rate that is double the straight-line rate. This means that the asset will be depreciated at a faster rate, resulting in lower value of the asset over time.
Learning Objectives
- Acquire knowledge on depreciation and amortization principles applicable to enduring assets.