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Depreciation, Provisions and Reserves — Account STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceAccountDepreciation, Provisions and Reserves1 Mark
MCQ
An asset is never reduced to zero in the _______________.
  • A
    Fixed instalment method.
  • ✓
    Reducing balance method.
  • C
    Annuity method.
  • D
    Sum of years method.
✓

Answer

Correct option: B.
Reducing balance method.
Under reducing balance method of Depreciation, Depreciation is calculated at the fixed rate on the reducing balance of the asset therefore, the value of an asset is never zero under this method

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