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DP
Question Practice

If a company uses a vehicle for fewer years than originally estimated, how will this affect depreciation calculations?

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

If a company uses a vehicle fo...

Single Answer MCQ
Q-00054236

If a company uses a vehicle for fewer years than originally estimated, how will this affect depreciation calculations?

1

It has no impact; depreciation remains constant

2

Total depreciation will be increased

3

The annual depreciation expense will decrease

4

Total depreciation will decrease

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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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