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What is Fixed Instalment Method?

10. What is Fixed Instalment Method?

1. The amount of depreciation each year is fixed and equal.
2. Way to work out the loss of value of an asset over time.
3. System of recording larger depreciation expenses during the earlier years.
4. An accelerated method for calculating an asset's depreciation.

Answer: A) The amount of depreciation each year is fixed and equal.

Explanation:

This is the most seasoned and most broadly utilized technique for devaluation. A proper measure of devaluation is charged each year during the lifetime of the resource. Toward the finish of the resource's helpful life (e.g., the finish of a machine's life), the worth of the resource will be zero.