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DP
Question Practice

If an asset has a high cost but a low salvage value, how does this affect 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

If an asset has a high cost bu...

Single Answer MCQ
Q-00054220

If an asset has a high cost but a low salvage value, how does this affect depreciation?

1

It decreases the depreciation expense

2

It has no effect on depreciation

3

It increases the total depreciation expense

4

It makes calculating depreciation more complex

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Continue with nearby questions to strengthen the same chapter concept while you still have the context fresh in mind.

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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