Which of the following is NOT a method of depreciation?
a) Straight-Line Method
b) Reducing Balance Method
c) Sum-of-the-Digits Method
d) Marginal Costing Method
In the straight-line method, depreciation expense is:
a) Constant each year
b) Higher in the early years
c) Higher in the later years
d) Based on the sum of digits
Which depreciation method results in decreasing depreciation expenses over time?
a) Straight-Line Method
b) Units of Production Method
c) Declining Balance Method
d) Revaluation Method
The declining balance method applies depreciation as a percentage to:
a) The original cost
b) The residual value
c) The book value of the asset
d) The total revenue
Which method is most suitable for assets that lose more value in the initial years?
a) Straight-Line Method
b) Sum-of-the-Digits Method
c) Declining Balance Method
d) Units of Production Method
Which depreciation method considers the actual usage of an asset?
a) Straight-Line Method
b) Sum-of-the-Digits Method
c) Units of Production Method
d) Declining Balance Method
Which method calculates depreciation based on an increasing fraction of the asset’s total value?
a) Sum-of-the-Digits Method
b) Straight-Line Method
c) Revaluation Method
d) Declining Balance Method
Which method charges higher depreciation in earlier years and lower in later years?
a) Straight-Line Method
b) Double Declining Balance Method
c) Revaluation Method
d) Sinking Fund Method
Which depreciation method is commonly used for machinery and equipment?
a) Straight-Line Method
b) Units of Production Method
c) Sum-of-the-Digits Method
d) Revaluation Method
Which method considers the asset’s useful life in terms of working hours or output?
a) Straight-Line Method
b) Revaluation Method
c) Units of Production Method
d) Declining Balance Method
Which method is most commonly used for intangible assets?
a) Straight-Line Method
b) Reducing Balance Method
c) Sinking Fund Method
d) Double Declining Balance Method
Which method adjusts depreciation based on changes in market value?
a) Revaluation Method
b) Straight-Line Method
c) Sinking Fund Method
d) Sum-of-the-Digits Method
Which method is best suited for assets like land and buildings?
a) Straight-Line Method
b) Revaluation Method
c) Declining Balance Method
d) Units of Production Method
The sum-of-the-years-digits method is an example of:
a) Accelerated depreciation
b) Straight-line depreciation
c) Units of production depreciation
d) Historical cost depreciation
Which method ensures equal depreciation expenses every year?
a) Straight-Line Method
b) Declining Balance Method
c) Double Declining Balance Method
d) Units of Production Method
Which method is commonly used in financial reporting for simplicity?
a) Sum-of-the-Digits Method
b) Units of Production Method
c) Straight-Line Method
d) Sinking Fund Method
Which method results in a higher tax deduction in the initial years of an asset’s life?
a) Straight-Line Method
b) Declining Balance Method
c) Revaluation Method
d) Sinking Fund Method
The double declining balance method applies a depreciation rate that is:
a) 50% of the straight-line rate
b) Equal to the straight-line rate
c) Twice the straight-line rate
d) Based on estimated production units
Which method is ideal for mines and quarries?
a) Straight-Line Method
b) Sum-of-the-Digits Method
c) Units of Production Method
d) Declining Balance Method
Which depreciation method does NOT consider the residual value of the asset?
a) Revaluation Method
b) Straight-Line Method
c) Sum-of-the-Digits Method
d) Declining Balance Method
Which depreciation method is suitable for vehicles and heavy machinery?
a) Straight-Line Method
b) Double Declining Balance Method
c) Sum-of-the-Digits Method
d) Revaluation Method
Which method considers an asset’s life in years, assigning a decreasing fraction each year?
a) Straight-Line Method
b) Sum-of-the-Digits Method
c) Declining Balance Method
d) Sinking Fund Method
Which method is commonly used for tax purposes due to its higher initial deductions?
a) Straight-Line Method
b) Declining Balance Method
c) Revaluation Method
d) Units of Production Method
Which method is NOT a part of accelerated depreciation?
a) Double Declining Balance Method
b) Sum-of-the-Digits Method
c) Straight-Line Method
d) Declining Balance Method
Which of the following is NOT a depreciation method?
a) Written Down Value Method
b) Sinking Fund Method
c) Current Market Value Method
d) Straight-Line Method
