Question

Under which of the following method depreciation is not charged uniformity?

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

Answer 1

The correct option is C Double decline method

Double-Declining Balance, revenues and assets will be reduced more due to the higher depreciation expense. In later years, a lower depreciation expense can have a minimal impact on revenues and assets. However, revenues may be impacted by higher costs related to asset maintenance and repairs.