Question

Under which of the following method depreciation charged does not declines?
(i) Insurance policy method
(ii) Double decline method
(iii) Annuity method

(iv) Depletion unit method
(v) Depreciation fund method
The correct answer is -

• A. (ii) and (iv).
• B. (i), (iii), (iv) and (v).
• C. (i), (iii) and (v).
• D. (i), (ii) and (iv).

Answer 1

Answer: (C)

(i), (iii) and (v).

As the name suggests, in the given question,only under double decline method and depletion method does the depreciation charge decline year on year.

In case of the other methods given in the question, the depreciation charge is uniform year on year.