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DP
Question Practice

When considering which depreciation method to use, which factor is most crucial?

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

When considering which depreci...

Single Answer MCQ
Q-00054255

When considering which depreciation method to use, which factor is most crucial?

1

Company’s annual profits

2

The nature of the asset’s use

3

Market value of the asset

4

Type of business

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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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