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DP
Question Practice

How does the residual value of an asset influence its depreciation?

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA
CBSE
Class 11
Accountancy
Financial Accounting - I
Depreciation, Provisions and Reserves
Question Bank

How does the residual value of...

Single Answer MCQ
Q-00054224

How does the residual value of an asset influence its depreciation?

1

Higher residual value increases depreciation

2

Lower residual value decreases depreciation

3

Higher residual value decreases depreciation

4

Residual value does not influence depreciation

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Q1.

What is depreciation?

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Q2.

Which method calculates depreciation as a fixed percentage of the book value each year?

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Q3.

What factor does NOT affect the calculation of depreciation?

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Q4.

What is the salvage value in relation to depreciation?

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