Diminishing balance method of depreciation is calculated with:
Full cost of the asset
Cost of the asset at that year
Cost of the asset
Net value of the asset
The records can show only the estimated value of assets because of :
Loss
Reduction in tax
By law of business
Depreciation
Asset is completely written off is the main advantage of:
Fixed instalment method
Diminishing balance method
Net book value method
Depreciation method
The asset value figure of cost less depreciation is:
Written down value method
Residual method
Revaluation method
Depreciation does not involve out flow of money because:
It is a non-monetary expense.
It is an income.
It is a capital expenditure.
It is prudence.
The assets are valued at the end of each financial year. This is:
Diminishing method
Written off method
Straight line method
Purchase of fixed asset is a:
Revenue expenditure
Revenue loss
Capital expenditure
Capital loss
Sale of a fixed asset is:
Capital receipt
Revenue receipt
Estimated loss in the fixed asset over a period of time is:
Loss of fixed asset
Appreciation
Diminishing
The other name of reducing balance method is:
Straight line balance method
