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Write the word/term/phrase which can substitute each of the following statement:

i. The method of depreciation in which the rate of depreciation is fixed but the amount of depreciation reduces every year.

ii. The type of asset on which depreciation is charged.

iii. Expenses incurred for fixation of the new asset to bring it in working condition.

iv. Excess of the Selling price of a fixed asset over its Written Down Value.

v. Method of depreciation that cannot reach zero value.

1 Answer

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i. Reducing Balance Method

ii. Fixed Asset

iii. Installation Charges

iv. Profit on Sale of Asset

v. Diminishing Balance Method

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