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TASAccountingQuick questions

Financial Accounting

Quick questions on Depreciation of Non-Current Assets - TCE Accounting (Tasmania)

2short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is straight-line method?
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Straight-line charges the same expense every year.
What is reducing-balance method?
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Reducing-balance applies a fixed percentage to the carrying value, so the expense is largest in year one and falls each year. Residual value is not subtracted first.

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