Accounting for IGCSE & O level - Accounting Procedures (Section 26 - No. 16)
What is the primary difference between straight-line depreciation and accelerated depreciation methods?
Straight-line uses salvage value, accelerated methods don't.
Accelerated methods expense more depreciation early in an asset's life.
Straight-line is only used for tangible assets.
Accelerated methods spread out the cost equally across the asset's life.
Explanation
Accelerated depreciation recognizes higher depreciation expense during the early years of an asset's useful life.
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