Depreciation, Provisions and Reserves · Class 11 · CBSE · Commerce Accountancy
Under the Straight Line Method (SLM) of depreciation, the amount of depreciation charged every year:
Practice question from Depreciation, Provisions and Reserves (Class 11 · CBSE · Commerce Accountancy), with the correct answer and a step-by-step solution.
easy · MCQ · Q-C116F3
Under the Straight Line Method (SLM) of depreciation, the amount of depreciation charged every year:
- A.Decreases every year
- B.Increases every year
- C.Remains constant throughout the useful life of the assetCorrect answer
- D.Fluctuates based on the production output
Solution
In the Straight Line Method, a fixed percentage of the original cost of the asset is written off every year, so the depreciation amount remains constant.
More from Depreciation, Provisions and Reserves
- What is the primary cause of depreciation for a tangible fixed asset according to accounting principles?
- Which of the following methods of depreciation results in a reducing charge of depreciation each year?
- A machine is purchased for Rs. 1,00,000 on April 1, 2021. The estimated useful life is 10 years, and the estimated scrap value is Rs. 10,00…
- What is the key difference between a Provision and a Reserve?
Practise more Accountancy
Sign up free for adaptive practice on this chapter, with instant feedback and hints on every question.
Start practising freeFree to start · No credit card needed