Financial and Management Accounting

1: In the case of a particular depreciation method, the periodic depreciation is smaller than the asset's actual annual depreciation cost. The annual net incidence on profit and loss account remains constant due to incorporation of only fixed depreciation. The periodic depreciation is not recorded through the asset account. The depreciation method used in this case is
A.

Sinking fund method

B.

Diminishing balance method

C.

Annuity method

D.

Sum-of-year digits method

 

Answer : A

Explanation :

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Option: A

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