Which of the following is/are disadvantage of fixed instalment method of charging depreciation?

The assumption that the asset shall be equally useful throughout its life seems to be illogical.

No worries! We‘ve got your back. Try BYJU‘S free classes today!

It does not take into account the effective utilization of the asset.

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Depreciation remains constant under this method over the useful life of the asset, hence true financial results cannot be shown by this method if use of the asset differs from year to year.

No worries! We‘ve got your back. Try BYJU‘S free classes today!

All of the above.

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D All of the above.
All of the above are disadvantages of the Straight line Method.

Suggest Corrections

Similar questions

___is a method of depreciation, in which the cost of the asset is spread uniformly over the life years by writing off a fixed amount every year, where as in ___ method of depreciation, a fixed rate of depreciation is charged on the book value of the asset over its useful life.

Under which depreciation method the amount of depreciation expense remains same throughout the useful life of a fixed asset?

Under this method, a particular asset is expected to generate equal utility (economic benefits) during its useful life. Which method is this?

The annual depreciation charged under _______ method remains fixed during the life of asset, while it diminishes every year in ______ method

Q. Under which depreciation method :
Asset account continues to appear at its original cost year after year over its entire life.

Join BYJU'S Learning Program

Which of the following is/are disadvantage of fixed instalment method of charging depreciation?

The correct option is D All of the above.All of the above are disadvantages of the Straight line Method.

The correct option is D All of the above.
All of the above are disadvantages of the Straight line Method.