Practice free →
Home › CBSE Class 11 (Commerce) › Accountancy › Depreciation, Provisions and Reserves › What faulty assumption does the straight line me…

What faulty assumption does the straight line method make?

ARepairs fall each year
BSame utility every year
CScrap value is zero
DCost keeps rising
Answer & Solution
Correct answer: B. Same utility every year
It treats the asset as giving equal benefit every year, though efficiency actually falls with age.
Solve this in the app — CBSE Class 11 (Commerce) practice & 24k+ MCQs →
Related questions