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Issue of Debentures as Collateral Security

is suitable w...

Question

__________ is suitable were repairs cost are low and obsolescence is low.

A

Straight line method

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B

written down value method

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C

Both

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D

None

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Solution

The correct option is A Straight line method
Straight line method is suitable for those assets in relation to which (a) rapairs charges are less, and (b) the possibility of obsolescence is less. This method is suitable for furniture, Patent, Copyright, Trademark, lease, land and building etc.

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Issue of Debentures as Collateral Security

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