Sinking fund depreciation - Provides cash for replacement of asset at end of its useful life

Q.  Which method provides cash for the replacement of asset at the end of its useful life?
- Published on 06 Oct 15

a. Straight line depreciation
b. Sum of years digits depreciation
c. Declining balance depreciation
d. Sinking fund depreciation

ANSWER: Sinking fund depreciation

Post your comment / Share knowledge


Enter the code shown above:
 
(Note: If you cannot read the numbers in the above image, reload the page to generate a new one.)