Question

Explain ‘sum-of-years’ digits’ method

• A. Depreciation equal each year B
• B. Accelerated way of evaluating asset depreciation
• C. Loss of value as asset becomes obsolete
• D. Tracks larger expenses from previous years

Answer 1

Answer:

B. Accelerated way of evaluating asset depreciation

Sum of year digit method is an accelerated method, higher depreciation in early years.