Question

There are three types of depreciation: book depreciation, wild depreciation, and tax depreciation.

Select one:

a. TRUE

b. Fals

Answer 1

(b) This statement is false. The types of depreciation are as follows :

1. Straight line depreciation:In this case, the amount of expense is same every year till the useful life of any asset.

2. Unit of production:It depreciates assets based on total numbers of hours or number of units which are produced using any asset till its useful life.

3. Double declining:It basically explains that aseets are more productive in the initial years than later.

4. Sum of years digits:It states that expenses are more in early phase of assets useful life than in the later stage.