Accounting · Depreciation
Evaluate the following statements regarding the Written Down Value (WDV) Method of depreciation: Statement 1: The amount of depreciation charged under the WDV method decreases year after year over the asset's useful life. Statement 2: WDV is based on the assumption that the utility of the asset is greater in the initial years, thereby justifying a higher initial depreciation charge. Statement 3: Under the WDV method, the book value of the asset can eventually be reduced to exactly zero even without any salvage value.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Statements 1, 2, and 3 are all correct
- 2Statements 1 and 3 are correct
- 3Statements 2 and 3 are correct
- 4Statements 1 and 2 are correct✓
Correct answer
Statements 1 and 2 are correct
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