One accelerated depreciation method is called fixed-percentage-of-declining-balance. Explain what is meant by the terms “fixed-percentage” and “declining-balance.” Forwhat purpose is this method most widely used?

One accelerated depreciation method is called fixed-percentage-of-declining-balance. Explain what is meant by the terms “fixed-percentage” and “declining-balance.” Forwhat purpose is this method most widely used?

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter7: Fixed Assets, Natural Resources, And Intangible Assets

Section: Chapter Questions

Problem 7.2.2MBA

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Question

One accelerated depreciation method is called fixed-
percentage-of-declining-balance. Explain what is meant by

the terms “fixed-percentage” and “declining-balance.” For
what purpose is this method most widely used?

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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