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Doctors Medicines MCQs Q&A

  1. Straight-line method
  2. Constant percentage method
  3. Sinking fund method
  4. Quantity survey method
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Option 4 : Quantity survey method

Different methods to calculate depreciation are as follows :

a) Straight-line method

b) Constant percentage method

c) Sinking fund method

d) Quantity survey method

Quantity survey method: In this method, the property is studied in details and extent of physical deterioration worked out in endeavor to calculate the depreciation.

Sinking fund method: In this metho, the depreciation is assumed to be annual sinking fund plus interest of the accumulated sinking fund till that year.

Constant percentage method: In this method, the property is assumed to lose value annually at a constant percentage of its value.

Straight-line method: In this method, the property is assumed to lose value by a constant amount every year.
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