Diminishing Line Method of Depreciation Quiz
Test your knowledge of the diminishing balance method of depreciation, its application, and key concepts.
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Test your knowledge of the diminishing balance method of depreciation, its application, and key concepts.
Play through the questions and see your score instantly
8 questions · Quick play · Instant results
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Original cost throughout the asset's life
Book value at the beginning of each year
Market value at the end of each year
Salvage value of the asset
Equal depreciation amount each year
Increasing depreciation over time
Decreasing depreciation charges each year
Zero depreciation in final years
$6,400
$6,000
$8,000
$7,200
Land and buildings
Technology and vehicles
Office furniture
Patents and trademarks
Remains constant
Increases gradually
Decreases gradually
Fluctuates randomly
Straight line method
Reducing balance method
Sum of years method
Production unit method
Easier calculations
Better matching of cost with revenue
Higher salvage value
Lower maintenance costs
Annual depreciation amount
Book value reduction
Depreciation rate percentage
Asset's market value
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