ACC 230 WEEK 2 CHECKPOINT - DIFFERENTIATING DEPRECIATION METHODS

ACC 230 WEEK 2 CHECKPOINT - DIFFERENTIATING DEPRECIATION METHODS

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Week 2 CheckPoint: Differentiating Depreciation Methods · Resource: Ch. 2 of Understanding Financial Statements · Due Date: Day 4 [Individual forum] · Compose a 200- to 300-word response to question 2.4 on p. 74 (Ch. 2). In addition, include a summary of the advantages and disadvantages of using different depreciation methods (straight-line versus accelerated).
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Discuss and differentiate straight line method of depreciation and accelerated method. Depreciable assets lose value with time because of wear and tear, aging and obsolescence.This loss in value of tangible assets with time is called depreciation. Straight line depreciation method is most commonly used. In this method,charges are spread evenly over the useful life of the asset.Depreciation charged every year in this method is constant. This allows for more income smoothing where income has gradual change over useful life of the asset without dips and highs. Accelerated method of depreciation assumes that an asset is used heavily during the early years
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ACC 230 WEEK 2 CHECKPOINT - DIFFERENTIATING DEPRECIATION METHODS

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