Economics · Inventory and Depreciation Accounting
Which of the following statements regarding accounting methods and standards are correct? A. In a period of rising prices, the FIFO method leads to higher reported profits because older, cheaper costs are charged against revenue. B. Under the Written Down Value (WDV) method of depreciation, the book value of an asset never reaches zero. C. Initial measurement of Property, Plant and Equipment (PPE) under AS 10 includes the purchase price as well as costs like import duties and installation. D. The Straight Line Method (SLM) of depreciation results in a depreciation charge that decreases annually over the useful life of the asset. Choose the most appropriate answer from the options given below:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1A, C and D Only
- 2A, B and C Only✓
- 3A, B and D Only
- 4B, C and D Only
Correct answer
A, B and C Only
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Inventory and Depreciation Accounting MCQs →Want more practice questions on Inventory and Depreciation Accounting?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Inventory and Depreciation Accounting