1
Question
Under the __________ method of charging depreciation , depreciation is calculated on original cost.
Under the __________ method of charging depreciation , depreciation is calculated on original cost.
Open in App
Solution
The correct option is A Straight line
Straight line method of depreciation is the one where the rate of depreciation for every year is charged on the original cost of the asset. The formula for calculating the amount of depreciation under straight line method is also based on the original cost as follows:
Depreciation = (Original Cost - Residual value) / Useful life.
Straight line method of depreciation is the one where the rate of depreciation for every year is charged on the original cost of the asset.
The formula for calculating the amount of depreciation under straight line method is also based on the original cost as follows:
Depreciation = (Original Cost - Residual value) / Useful life.
Depreciation = (Original Cost - Residual value) / Useful life.
Suggest Corrections
0
Similar questions