Discussion
An asset costing 50 000 with a 5-year life has a double declining balance rate of
Answer: C
Correct answer: 40 per cent
The straight line rate is the reciprocal of the life and the double declining rate is twice it: \[ 2 \times \frac{1}{5} = 0.40 = 40\ \text{per cent.} \] The rate is a property of the life alone; neither the cost nor the salvage value enters it.
No comment is present. Be the first to comment.
Loading…
Post your comment
Please log in or register to post a comment.
Examination Categories
- SSC Exams
- Banking Exams
- Teaching Exams
- Civil Services Exams
- Railways Exams
- Engineering Recruitment Exams
- Defence Exams
- State Government Exams
- Police Exams
- Insurance Exams
- Nursing Exams
- Other Government Exams
- NRA CET
- PG Entrance Exams
- Campus Placement
- MBA Entrance Exams
- CUET and UG Entrance
- Judiciary Exams
- Regulatory Body Exams
- Software Development