WAEC Accounting 2020 Objective — Question 50
Question 50 of 50 from the West African Examinations Council (WAEC) Accounting 2020 Objective paper, with the correct answer and a full explanation.
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A method of charging depreciation at a fixed percentage of the net book value is A. straight line method. B. reducing balance method. C. sum of the years' digits method. D. revaluation method.
- A. straight line method
- B. reducing balance methodCorrect
- C. sum of the years' digits method
- D. revaluation method
Explanation
The reducing balance method is based on charging a percentage of the net book value of the asset each period, unlike the straight line method which charges a fixed amount based on cost.
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