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

 

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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