Question

In straight line method ________
(a) Depreciation is charged on remaining book value every year.
(b) Depreciation is charged only for half of the year.
(c) Depreciation is charged on cost price of asset every year.
(d) Book value of Asset will never be zero

Answer 1

Answer:

Option (a) Depreciation is charged on remaining book value very year.

Answer 2

In the straight-line method (a) Depreciation is charged on the remaining book value every year.

• There are two types of depreciation Straight-line Method and the Written Down Value Method.
• In SLM, there is a fixed amount of deduction from the asset and it will reduce until it reaches the scrap value.
• It is the most simple and methodical technique to calculate depreciation.
• There is a uniform pattern in the depreciation amount.
• The method is not helpful for bigger value, only a smaller value of the asset will work.