Question

which of the following is not a method of depreciation? (A) revaluation,(B) reducing balance,(C)replacement method,(D)straight line method​

Answer 1

Answer:

C) replacement method.

Answer 2

The replacement method is not a method of depreciation. (Option C)

• In the Revaluation method, the amount of depreciation is the difference between the opening and closing value of the asset at the end of the year.
• In the Reducing balance method, the depreciation is calculated on the book value of the asset every year. The value of depreciation keeps reducing.
• In the Straight-line method, the amount of depreciation remains the same every year.