O-LevelAccountingAccounting principles and policies7707/13 · Oct/Nov 2020 · Q321 Mark
Zak has depreciated his machinery at the rate of 20% per annum using the straight-line method. At 31 December 2018 the statement of financial position included: $ machinery at cost 30 000 depreciation to date 12000 18000 On 31 December 2019 Zak was considering calculating the annual depreciation at 20% per annum on the net book value of the machinery. Which statement is correct?
Adepreciation would be $3600 applying the consistency principle
Bdepreciation would be $3600 applying the prudence principle
Cdepreciation would be $6000 applying the consistency principle
Ddepreciation would be $6000 applying the prudence principle
✓ Correct answer
C: depreciation would be $6000 applying the consistency principle
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