{"id":8701,"date":"2024-04-15T03:04:49","date_gmt":"2024-04-15T03:04:49","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=8701"},"modified":"2024-04-15T03:04:49","modified_gmt":"2024-04-15T03:04:49","slug":"in-what-method-of-computing-depreciation-where-it-assumes-that-the-loss-in-value-is-directly-proportional-to-the-age-of-the-equipment-or-asset-a-straight-line-method-b-sinking-fund-method-c-sum-of","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/in-what-method-of-computing-depreciation-where-it-assumes-that-the-loss-in-value-is-directly-proportional-to-the-age-of-the-equipment-or-asset-a-straight-line-method-b-sinking-fund-method-c-sum-of\/","title":{"rendered":"In what method of computing depreciation where it assumes that the loss in value is directly proportional to the age of the equipment or asset? A. Straight line method B. Sinking fund method C. Sum-of-year digit method D. Declining balance method"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a985e2a13085\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    Straight line method                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    Sinking fund method                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    Sum-of-year digit method                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"true\">\r\n                    Declining balance method                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is D. Declining balance method.<\/p>\n<p>The declining balance method is a depreciation method in which the depreciation expense is calculated as a fixed percentage of the asset&#8217;s book value. The percentage is applied to the book value each year, and the book value is reduced by the depreciation expense. This method results in a higher depreciation expense in the early years of the asset&#8217;s life and a lower depreciation expense in the later years.<\/p>\n<p>The declining balance method is often used for assets that have a short useful life, such as computers and automobiles. It is also used for assets that have a high salvage value, such as buildings.<\/p>\n<p>The other methods of computing depreciation are:<\/p>\n<ul>\n<li>Straight line method: In this method, the depreciation expense <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n               <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div>      <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> is calculated as a fixed amount each year. The amount is equal to the cost of the asset divided by its useful life.<\/li>\n<li>Sum-of-the-years&#8217; digits method: In this method, the depreciation expense is calculated as a decreasing amount each year. The amount is equal to the sum of the digits of the asset&#8217;s useful life divided by the number of years remaining in the asset&#8217;s useful life.<\/li>\n<li>Sinking fund method: In this method, the depreciation expense is calculated as a fixed amount each year. The amount is equal to the amount that would be deposited into a sinking fund each year to accumulate enough money to replace the asset at the end of its useful life.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[656],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>In what method of computing depreciation where it assumes that the loss in value is directly proportional to the age of the equipment or asset? A. Straight line method B. Sinking fund method C. Sum-of-year digit method D. 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