Question
A company acquired a machine for ₹12 lakhs with an expected useful life of 6 years and residual value of ₹1.2 lakh. Using the straight-line method, the company charged full year depreciation even if purchased mid-year. What accounting assumption is violated?
More Depreciation Questions
- A company purchased machinery on 1st April 2023 for ₹15,00,000. It charges depreciation @15% p.a. under the Diminishing Balance Method. The written-down va...
- A company purchases an intangible asset (software license) for ₹20 lakhs, with a legal validity of 5 years and probable economic benefit of 8 years. As per...
- A company acquired a machine for ₹12 lakhs with an expected useful life of 6 years and residual value of ₹1.2 lakh. Using the straight-line method, the com...
- Which method of depreciation results in equal depreciation expense each year?
- If a firm has been changing its depreciation policy every year, it is violating the_______ concept/principle of accounting.
- The primary cause of depreciation is:
- Which accounting standard in India deals with depreciation accounting?
- NRV or net realizable value of inventory is the expected selling price or market value less....
- A vehicle purchased for ₹8,00,000 has an estimated useful life of 5 years and a residual value of ₹1,00,000. Using the Straight-Line Method, the depreciati...
- Under AS 6, which of the following cannot be considered a method of depreciation?
Hey! Ask a query
Please enter email id
The email must be a valid email address.
Please enter Mobile Number
Please enter valid Mobile Number
Please enter your Doubt
