O-LevelAccountingAccounting procedures7707/12 · Oct/Nov 2018 · Q131 Mark
Sally bought a non-current asset. It was to be used for 10 years, after which it would have no scrap value. Sally used the straight-line method of depreciation. Which statements are correct?
Aaccumulated depreciation after five years: equalled half of cost; annual depreciation charge: decreased each year
Baccumulated depreciation after five years: equalled half of cost; annual depreciation charge: was constant
Caccumulated depreciation after five years: was more than half of cost; annual depreciation charge: decreased each year
Daccumulated depreciation after five years: was more than half of cost; annual depreciation charge: was constant
✓ Correct answer
B: accumulated depreciation after five years: equalled half of cost; annual depreciation charge: was constant
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