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Straight Line Method(SLM)

Cost of the a...

Question

(Cost of the asset minus scrap value)/ Life of the asset is the formula of ___

A

Diminishing balance method

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B

Annuity method

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C

Straight line method

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D

Sum of the digits method

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Solution

The correct option is C
Straight line method

This is the formula for Straight Line Method for calculating depreciation.

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Similar questions

Q. Original cost of asset : 80,000 scrap value : 10,000 Life of asset : 10 years
calculate annual depreciation ______.

Q. According to method, the formula of depreciation is

\frac{C o s t o f t h e a s s e t - S c r a p v a l u e}{L i f e o f t h e a s s e t}

Q. Depreciation = Cost of asset less scrap value / Estimated working _____ of assets.

Q. The value of an asset is Rs.9,00,000 and scrap value is Rs.1,25,000. If the life of asset is 10 years, then the cost of depreciation is . (SLM Method)

D e p r e c i a t i o n = \frac{Cost of Asset less Scrap Value}{Estimated Working ____________ of Asset}

.

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Straight Line Method(SLM)

Standard XI Accountancy

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