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      Question

      Which of the following is NOT a method of charging

      depreciation?
      A Reducing Balance Method Correct Answer Incorrect Answer
      B Straight Line Method Correct Answer Incorrect Answer
      C Inventory Method Correct Answer Incorrect Answer
      D Units of Production Method Correct Answer Incorrect Answer

      Solution

      The Inventory Method is used for valuation of inventories (AS 2), not for charging depreciation. The other three are valid depreciation methods.

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