Question

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

The method of depreciation under which depreciation is calculated on balance amount

Answer 1

The method of depreciation under which depreciation is calculated on balance amount- Written Down Value Method

Explanation:
Under the Written Down Value Method, depreciation is charged on the reducing value of an asset every year. As the amount of the asset goes on decreasing every year, the amount of depreciation under this method will be calculated on the balance amount. Hence, the amount of depreciation will change every year.