Question

Write the word/term/pharse which can substitute each of the following statement :

The method of depreciation under which depreciation is calculated on original cost of asset.

Answer 1

The method of depreciation under which depreciation is calculated on original cost of asset- Straight Line method

Explanation:
The straight line method is the method of depreciation that calculates depreciation on the original cost of an asset and the depreciation amount remains same or equal every year. The depreciation is calculated on the original cost of the asset less scrap value divided by the number of years of useful life of the asset. The formula to calculate depreciation is as follows: