Which of the following statements is true with regard to written down value method of depreciation?
i. The rate at which the asset is written off reduces year after year
ii. The amount of depreciation provided reduces from year to year
iii. The rate of depreciation as well as the amount of depreciation reduce year after year
iv. The value of the asset gets reduced to zero over a period of time

Question

Quizplus · Accepted Answer

The written down value method (also known as the declining balance method) of depreciation involves reducing the value of an asset by a fixed percentage each year. This means the amount of depreciation decreases each year, but the rate of depreciation remains constant, not reducing as the asset's value decreases. The value of the asset does not reduce to zero but approaches it asymptotically.

Which of the Following Statements Is True with Regard to Written