CBSE BoardEnglish MediumSTD 11 CommerceAccountDepreciation, Provisions and Reserves1 Mark
MCQ
The written down method is based on _____________ assumption of same amount.
A
Faulty
✓
Realistic
C
Invalid
D
None of the above
✓
Answer
Correct option: B.
Realistic
This method is based on the assumption that in the earlier years the cost of repairs to the assets is low and hence more amount of depreciation should be charged. Also, in the later years, the cost of repairs will increase and therefore less amount of depreciation shall be provided.
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