Which of the following is not a method of charging depreciation?
Correct answer: C. Discounted present value Method
- A. Straight line Method
- B. Written down value Method
- C. Discounted present value Method
- D. Sum of digits MethodCompare Credit Cards
Explanation
Straight-line, written-down-value, and sum-of-digits methods are recognised depreciation methods. Discounted present value is a valuation concept, not a standard depreciation method.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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