BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Written Down Value Method
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Straight Line Method
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Amount of depreciation does not vary on year to year basis
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Either A or B
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Detailed explanation-1: -Under Reducing Balance Method of depreciation amount of depreciation changes every year.
Detailed explanation-2: -Depreciation Methods Written-down value can be calculated by a method of depreciation that is sometimes called the diminishing balance method. This accounting technique reduces the value of an asset by a set percentage each year.
Detailed explanation-3: -Under the diminishing balance method of providing depreciation, it decreases every year.
Detailed explanation-4: -Under written down value method, the depreciation is calculated at a certain fixed percentage each year on the decreasing book value.
Detailed explanation-5: -Straight-Line Depreciation Method In straight-line depreciation, the expense amount is the same every year over the useful life of the asset.