Accountancy, asked by mahesh10843, 1 month ago

what is annuity method of depreciation in simple terms ?​

Answers

Answered by qureshimahin36
0

Answer:

The annuity method of depreciation is a process used to calculate depreciation on an asset by calculating its rate of return—just as if it were an investment. It is commonly used with assets that have a large purchase price, long life, and a fixed (or at least constant) rate of return.

Answered by Anonymous
0

Answer:

In the annuity method, goodwill can be calculated by taking average super profit. This particular profit is the value of an annuity over a certain number of years. Computation of the present value of this annuity is done by discounting it at the given rate of interest, i.e. on the normal rate of return.

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