Question
Straight line and Reducing balance Method
Answer :
Word Count : 157
| Criteria | Straight Line Method | Reducing Balance Method |
|---|---|---|
| Depreciation Calculation | Depreciation is calculated evenly over the useful life of the asset. | Depreciation is higher in the earlier years and decreases over time. |
| Depreciation Expense | Fixed depreciation expense every year. | Depreciation expense decreases as the asset value decreases. |
| Asset's Book Value | Depreciation is subtracted equally each year, reducing the asset's value steadily. | The asset's value decreases more in the initial _____ _____ ___ _____ ______ _________ _______. ____ ________ ____ _______ _____ __________ ________ __________ ____ _________ _______ ______. __________ __________ _____ ________ _________ ______ _____ _____ ____ _______ _______ _______. _________ _________ _________ ____ _______ _______ ______ _________ ___ ____ ______. ___ ______ _____ __________ _______ ___ ____ ___. ________ ___ ____ ____ __________ _______ ___ ________ _______ ___ __________. ________ _________ _________ _________ __________ _____ ______. _________ _______ ________ _____ ________ ______ __________. _____ _________ ____ _______ ______ ___ __________ ______ _________ _________ _______ _______. ___ _________ _______ _______ ______. ___ ____ ______ __________ __________ ______ ____ __________. IGNOU ACADEMY Your IGNOU journey, made easier.
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