Multiple choice

In which of the following methods of depreciation, an amount written off as depreciation is invested in readily saleable securities?

  1. Depreciation fund method

  2. Sum of digits method

  3. Annuity method

  4. Written down value method

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In this method, depreciation fund account is prepared and an amount every year is invested in saleable securities.