Analysing Comparative Statement of Profit and Loss
In the Straig...
Question
In the Straight-line method of providing depreciation, depreciation _______.
A
increase every year
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B
remain constant every year
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C
decreases every year
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D
None of them
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Solution
The correct option is A remain constant every year Under straight line method of depreciation, the amount of depreciation remains constant because depreciation is provided at a fixed rate on the purchase price of the asset.