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Which depreciation method charges a higher expense in the early years of an asset's life?

  1. A Straight line
  2. B Written down value (reducing balance)
  3. C Units of production
  4. D Revaluation method
Answer

Written down value (reducing balance)

Reducing balance applies a fixed percentage to a falling carrying amount, so the charge is front-loaded. Straight line spreads the cost evenly.

All Accounting MCQs

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