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Depreciation MCQs
What is Fixed Instalment Method?
10. What is Fixed Instalment Method?
- The amount of depreciation each year is fixed and equal.
- Way to work out the loss of value of an asset over time.
- System of recording larger depreciation expenses during the earlier years.
- An accelerated method for calculating an asset's depreciation.
Answer: A) The amount of depreciation each year is fixed and equal.
Explanation:
This is the most seasoned and most broadly utilized technique for devaluation. A proper measure of devaluation is charged each year during the lifetime of the resource. Toward the finish of the resource's helpful life (e.g., the finish of a machine's life), the worth of the resource will be zero.