Question

Out of the following, the depreciation calculated by the ______ method is the maximum.

• A. Straight line
• B. Diminishing balance
• C. Sum of the years digit
• D. Sinking fund

Hint:

Straight line depreciation is simple and results in equal annual depreciation charges.

Answer 1

The Correct Option is A

The straight line method gives the highest depreciation in the initial years compared to other methods listed, as it spreads the depreciable amount evenly over the useful life of the asset.