Diminishing Line Method of Depreciation Quiz
Test your knowledge of the diminishing balance method of depreciation, its applications, and calculations.
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Test your knowledge of the diminishing balance method of depreciation, its applications, and calculations.
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8 questions · Quick play · Instant results
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Original cost
Market value
Book value
Salvage value
Assets with constant utility
Assets with higher utility in later years
Assets with higher utility in initial years
Assets with no salvage value
₹20,000
₹16,000
₹12,000
₹8,000
Simpler calculations
Equal depreciation each year
Better matching of income and expenses
Lower total depreciation
Increases over time
Remains constant
Decreases over time
Fluctuates randomly
Cash Flow Statement only
Balance Sheet and Income Statement
Income Statement only
Balance Sheet only
Never reaches zero
Reaches zero quickly
Remains constant
Increases over time
1/n × 100
r = (1 - n√(S/C)) × 100
Cost/Life
(Cost - Salvage)/Life
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