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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Equal depreciation amount each year
Higher depreciation in early years and lower in later years
Lower depreciation in early years and higher in later years
Random depreciation amounts each year
Original cost of asset
Market value of asset
Book value of asset
Salvage value of asset
Assets with steady deterioration
Assets that lose value quickly in early years
Assets with no salvage value
Assets with increasing maintenance costs
Remains constant
Increases each year
Decreases each year
Fluctuates randomly
Simple calculation process
Matches actual asset value decline
Equal charges each year
Tax benefits in early years
As a percentage of original cost
As a percentage of remaining value
As a fixed amount
As a fraction of useful life
Increases at a decreasing rate
Increases at a constant rate
Increases at an increasing rate
Remains constant after a certain period
Asset's current market value
Initial cost of asset
Depreciation rate
Book value of asset
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