Accelerated Depreciation

Method that records greater DEPRECIATION than STRAIGHT-LINE DEPRECIATION in the early years and less depreciation than straight-line in the later years of an ASSET S holding period. (See STRAIGHT-LINE DEPRECIATION.)

Accelerated depreciation is a depreciation method that recognizes higher depreciation expense in the early years of an asset’s life and lower expense later, reflecting faster consumption of benefits.

- Used in day-to-day bookkeeping and journal entries to record transactions correctly.
- Used when preparing trial balances and reconciling accounts.

- Example: Accountants use **Accelerated Depreciation** when recording transactions and preparing the trial balance.

- Why it matters: Ensures accurate records, supports reliable reporting, and reduces posting and reconciliation errors.