Multiple choice

Directions: Choose the correct option for the given question.

Which method, for providing depreciation, is suitable for live stocks?

  1. Revaluation method

  2. Double decline method

  3. Reducing installment method

  4. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Live stock (animals like cattle, horses) requires periodic revaluation because their value changes due to growth, breeding potential, health, and market conditions. The Revaluation Method assesses actual value at each period-end rather than applying fixed depreciation. This accurately reflects the changing worth of living assets.

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