Diminishing Line Method of Depreciation Quiz
Test your knowledge of the diminishing line method (reducing balance method) of depreciation calculation and its applications in accounting.
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Test your knowledge of the diminishing line method (reducing balance method) of depreciation calculation and its applications in accounting.
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8 questions · Quick play · Instant results
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Equal depreciation amount each year
Depreciation increases each year
Higher depreciation in early years
No depreciation in first year
Original cost
Book value
Market value
Scrap value
Land and buildings
Technology and vehicles
Office furniture
Long-term investments
Remains constant
Decreases progressively
Increases progressively
Fluctuates randomly
Simpler calculations
Matches maintenance costs
Lower tax burden
Easier asset disposal
Scrap Value
Cost - Scrap Value
Original Cost
Market Value
Asset's useful life
Market demand
Salvage value
Asset type
For assets with steady value decline
For technology equipment
For vehicles
For machinery
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