Which of the following statements is true with regard to written down value method of depreciation? i. The rate at which the asset is written off reduces year after year ii. The amount of depreciation provided reduces from year to year iii. The rate of depreciation as well as the amount of depreciation reduce year after year iv. The value of the asset gets reduced to zero over a period of time

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332AccountingMedium

A(i),(ii) and (iii) above

BOnly (i) above

CBoth (i) and (ii) above

DOnly (ii) above

Correct answer

D. Only (ii) above

Explanation

Only (ii) above is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

Which of the following statements is true with regard to written down value method of depreciation? i. The rate at which the asset is written off reduces year after year ii. The amount of depreciation provided reduces from year to year iii. The rate of depreciation as well as the amount of depreciation reduce year after year iv. The value of the asset gets reduced to zero over a period of time - Answer and Explanation | Academy of Pakistan