Straight line method is also known as:

(a) Production Method
(b) Fixed Instalment Method
(c) Year’s Digit Method
(d) Reducing Balance Method

Answer: (b) Fixed Instalment Method
Straight line method is also known as fixed instalment method.

Depreciable amount =

(a) Cost of an asset – Residual value
(b) Cost of an asset + Residual value
(c) Residual value – Cost of an asset
(d) None of these

Answer: (a) Cost of an asset – Residual value
Depreciable amount = Cost of an asset – Residual value