Accounting 0452 · IGCSE · Accounting for depreciation and disposal of non-current assets

Accounting for depreciation and disposal of non-current assets — practice question

Simon acquired a new non-current asset. Why did he choose to depreciate it using the reducing balance method?

  • AThe non-current asset will be subject to rapid technological change.
  • BThe non-current asset will lose value faster in the later years.
  • CThe benefits from using the non-current asset will be lower in the earlier years.
  • DThe cash set aside to replace the non-current asset will increase quickly.

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