Which method or term?

Exercise and reference answers

Questions

1. Question

   Equal amount charged every year

   Choices

   1. Straight line
   2. Written down value
   3. Reserve

   Correct choice

   Straight line

2. Question

   Charge falls each year as the value drops

   Choices

   1. Straight line
   2. Written down value
   3. Provision

   Correct choice

   Written down value

3. Question

   Profit kept back to strengthen the firm

   Choices

   1. Provision
   2. Depreciation
   3. Reserve

   Correct choice

   Reserve

4. Question

   Loss of value because a newer model arrived

   Choices

   1. Obsolescence
   2. Reserve
   3. Provision

   Correct choice

   Obsolescence

Instructions

Tap the answer that fits each case.

Explanation