Multiple choice

The method where amount of depreciation is more in initial year and gradually goes on decreasing is

  1. straight line method

  2. annuity method

  3. <span style="direction:" ltr;="">diminishing balance method

  4. both straight line and annuity method

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

The depreciation goes on decreasing since it is calculated on residual value.