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What is the Declining Balance Method?

12. What is the Declining Balance Method?

1. The amount of depreciation each year is fixed and equal.
2. Way to work out the loss of value of an asset over time.
3. System of recording larger depreciation expenses during the earlier years.
4. An accelerated method for calculating an asset's depreciation.

Answer: C) System of recording larger depreciation expenses during the earlier years.

Explanation:

In bookkeeping, the declining balance technique is a sped-up deterioration procedure for recording bigger devaluation costs during the prior long stretches of a resource's helpful life while recording more modest devaluation during its later years.