Practice Advantages and Disadvantages of Different Methods - 4.5 | 4. Depreciation | ICSE Class 11 Accountancy
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4.5 - Advantages and Disadvantages of Different Methods

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is the main advantage of the Straight-Line Method?

💡 Hint: Think about simplicity in calculations.

Question 2

Easy

What does the Written Down Value Method do differently compared to the Straight-Line Method?

💡 Hint: Consider how the asset values change over time.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What is the main advantage of the Straight-Line Method?

  • Complex calculation
  • Simplicity and consistency
  • Higher initial depreciation

💡 Hint: Think about how easy it is to apply.

Question 2

True or False: The Written Down Value Method can lead to increased expenses in the later years.

  • True
  • False

💡 Hint: Consider how depreciation trends for assets over time.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A factory purchases machinery for $100,000, with an expected salvage value of $10,000 and a useful life of 10 years. Calculate the annual depreciation using both methods and discuss the implications for financial statements.

💡 Hint: Use formulas to figure both calculations before discussing.

Question 2

Critically discuss how the choice of depreciation method can affect investment decisions in a company. Provide examples.

💡 Hint: Consider the potential investor perceptions based on financial projections.

Challenge and get performance evaluation