Question

Assertion (A) :- Annual amount of depreciation under Straight line method remains the same.
Reason (R) :- Depreciation is charged on original cost of Asset every year under straight line method.
(a) Both A and R are correct and R is the correct explanation of A,
(b) Both A and R are correct but R is not the correct explanation of A.
(c) A is correct but R is incorrect.
(d) Both A and R are incorrect.

Answer 1

Answer:

Option (c) A is correct but R is incorrect.

Answer 2

The correct option is (a) Both A and R are correct and R is the correct explanation of A,

• Devaluation is viewed as a non-money cost since it is principally a progressing charge to the conveying measure of a specific fixed resource.
• The most fundamental way for properly estimating depreciation over considerable time represents straight-line depreciation.
• This comprehensive approach deducts the identical amount of devaluation from a specific asset's economic value for every term of its effective life.
• Thus, Both A and R are correct and R is the correct explanation of A,