The straight line method is based on __________________ assumption of same amount.

Faulty

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Correctly

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Accurately

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Perfectly

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Solution

The correct option is A Faulty
Straight Line method, in spite it is simple, is not very popular. Its most disadvantage is that whereas each year's depreciation charge is equal , the charge for repairs and renewals goes on increasing as the asset become older. This is based on faulty assumption of same amount.

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