What is depreciation?
  • Cost of using a fixed asset
  • The value of asset
  • Portion of a fixed assets cost consumed during the current accounting
  • Cost of fixed asset’s repair
Depreciation helps in determining
  • Accurate level of profit
  • Increases the value of asset
  • Revenue generation
  • Increase the burden of tax
What is the rate of charging depreciation under diminishing method?
  • 12% p. a.
  • 15% p. a.
  • 10% p. a.
  • Not fixed
Under which depreciation method the amount of depreciation expenses remains same throughout the useful life of a fixed asset
  • Straight line method
  • Reducing balance method
  • Number of units produced method
  • Machine hours method
0 h : 0 m : 1 s

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