Question

Annual depreciation cost are not constant when, the _____ method of depreciation calculation is used. 1. Straight line 2. Sinking fund 3. Present worth 4. Declining balance

Answer 1

Annual depreciation costs are not constant when Declining balance method of calculation is used.So the answer is option 4.

Explanation:

Declining balance method of calculating depreciation assumes that the depreciation expenses of an asset declines with its age or useful operating life.Under this method, the depreciation expense is calculated by relating the rate of depreciation to the book vale of the fixed asset at the beginning of the accounting period.