GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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If depreciation is calculated on the basis of the formula, (n (n + 1))/2, then which of the following methods is adopted?
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Annuity method
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Sinking fund method
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Diminishing value method
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Sum of years digits method
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Explanation:
Detailed explanation-1: -Under the written down value method depreciation is calculated on the original cost of an asset.
Detailed explanation-2: -The sum of years depreciation method works by depreciating the asset’s depreciable amount by a depreciation factor unique to each year. The depreciable amount is equal to the asset’s total acquisition cost less the asset’s salvage value.
Detailed explanation-3: -Straight Line Depreciation Method. Diminishing Balance Method. Sum of Years’ Digits Method. Double Declining Balance Method. Sinking Fund Method. Annuity Method. Insurance Policy Method. Discounted Cash Flow Method. More items •03-Jul-2019
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