Which of the following are applicable to sinking fund method of depreciation?
I. Periodic depreciation is smaller than the assets, actual annual depreciable cost
II. Amount of interest constantly declines due to assets, reducing balances
III. Annual net incidence on profit and loss account remains constant due to incorporation of only fixed depreciation
IV. Periodic depreciation is recorded through the assets account
Select the correect answer using the options given below:
A. II and IV
B. I and III
C. I, II and III
D. II, III and IV
Answer: Option B
This Question Belongs to Commerce >> Accounting
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