alleryStraight Line Method is also known as:
AReducing balance method
BSum of years method
CFixed instalment method
DUnits of production method
Answer & Solution
Correct answer: C. Fixed instalment method
1. SLM writes off an equal amount each period over the useful life.
2. Because the instalment is fixed, it is also called the Fixed Instalment Method.
3. Reducing balance is a different method (constant rate on WDV).
_Source: ICAI BoS Foundation Paper 1, Ch 5 "Depreciation & Amortisation", §3.1_
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