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WAEC Accounting 2021 Objective — Question 8

Question 8 of 50 from the West African Examinations Council (WAEC) Accounting 2021 Objective paper, with the correct answer and a full explanation.

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Reducing balance method charges depreciation as fixed percentage of the

  • A. net book value of assetCorrect
  • B. cost of asset
  • C. market value of asset
  • D. accumulated depreciation of asset

Explanation

Under the reducing balance method, depreciation is charged as a fixed percentage of the asset's net book value each year.

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