Answer to Question #99229 in Finance for Jane Lee

Question

Outline the three options to determine which depreciation method to choose for non-current assets.

Answer 1

Non current assets are those assets having m long terms investment like building, land, property, machinery, etc. The value of assets decreases year to year, due to depreciation. There are four method of depreciation out of four methods two methods viz. Straight line method which presume constant depreciation every years hence generate straight line, double decline method which generates exponential decrease the value of assets are used for non current assets depreciation