Economics · Depreciation Accounting
Which of the following statements is INCORRECT regarding depreciation methods?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The original cost method is also known as the equal installment method of providing depreciation.
- 2Depreciation goes on decreasing year after year in the written-down value method.
- 3The book value of the asset can never be reduced to zero under the written-down value method of providing depreciation.
- 4In the straight-line method, an increase in the scrap value of the asset would result in an increase in the amount of depreciation when everything else remains constant.✓
Correct answer
In the straight-line method, an increase in the scrap value of the asset would result in an increase in the amount of depreciation when everything else remains constant.
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