Question

The method of depreciation in which the amount of depreciation is not constant every year is _____________ .

• A. Written Down Value method
• B. Reducing Balance method
• C. Diminishing Balance method
• D. All of these

Answer 1

The correct option is D All of these

Under written down value method, depreciation calculated at a fixed percentage on the original cost (in the first year) and on the written down value (in subsequent years) of a fixed depreciable asset is written off during each accounting period over the expected useful life of asset. Under this method, the rate of depreciation remains constant year after year whereas the amount of depreciation goes on decreasing. Written down value method is also known as reducing balance method and diminishing balance method.