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Analysing Comparative Statement of Profit and Loss

Reduction of ...

Question

Reduction of assets results in of depreciation if company follows WDV method for calculating depreciation.

A

reduction

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B

increment

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C

none

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D

no change

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Solution

The correct option is A reduction
Reduction of assets i.e decrease in the value of assets will results in reduction of depreciation if company follows WDV method for calculating depreciation.

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