Question on: SS1 Accounting - Depreciation Account: Diminishing or Reducing Balance Method: Meaning, Formula, And Preparation
What is the difference between the straight-line method and the reducing balance method of depreciation?
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The straight-line method assumes that the asset depreciates at an equal rate over its useful life, while the reducing balance method assumes that the asset depreciates at a faster rate in the early years of its useful life and at a slower rate in the later years.
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