[amp_mcq option1=”Fixed installment method” option2=”Depreciation fund method” option3=”Diminishing balance method” option4=”Depletion unit method” correct=”option2″]<\/p>\n
The correct answer is: B. Depreciation fund method<\/strong><\/p>\n The depreciation fund method is a method of depreciation in which a depreciation fund is created to account for the cost of an asset. The fund is then used to purchase a new asset when the old one is no longer useful. This method ensures that the value of the asset never comes to zero.<\/p>\n The fixed installment method is a method of depreciation in which a fixed amount is depreciated each year. This method does not take into account the declining value of the asset over time.<\/p>\n The diminishing balance method is a method of depreciation in which a fixed percentage of the remaining book value of the asset is depreciated each year. This method results in a higher depreciation expense in the early years of the asset’s life and a lower depreciation expense in the later years.<\/p>\n The depletion unit method is a method of depreciation that is used for natural resources, such as oil and gas. In this method, the cost of the asset is divided by the estimated number of units that will be produced. The depreciation expense is then calculated as the product of the unit cost and the number of units produced in the year.<\/p>\n I hope this helps! Let me know if you have any other questions.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”Fixed installment method” option2=”Depreciation fund method” option3=”Diminishing balance method” option4=”Depletion unit method” correct=”option2″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-47629","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n