Question

Under which of following method depreciation is not charged uniformly?

• A. Fixed installment method.
• B. Insurance policy method.
• C. Double decline method.
• D. All of the above.

Answer 1

Answer: (C)

Double decline method.

As the name suggests, double decline method means depreciation is twice the amount calculated under the diminishing method of depreciation.

Depreciation amount keeps reducing with the passage of time at 200%.

Other two methods calculate depreciation on a consistent and uniform basis.