O-LevelAccountingAccounting procedures7707/12 · Oct/Nov 2013 · Q131 Mark

What would occur using the diminishing (reducing) balance method of depreciation?

ADepreciation charged in year 2 is greater than depreciation charged in year 1.

BDepreciation charged in year 2 is less than depreciation charged in year 1.

CDepreciation charged in year 2 is the same as depreciation charged in year 1.

DDepreciation charged in year 2 is zero.

✓ Correct answer

B: Depreciation charged in year 2 is less than depreciation charged in year 1.

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2013 Paper 1 Variant 2, question 13.

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