Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Financial Mathematics

Question:

Which of the following is not a method of computing Annual Depreciation?

Options:

Straight Line Method

Sum of the years digit method

Moving averages method

Reducing Balance method

Correct Answer:

Moving averages method

Explanation:

The correct answer is Option (1) - 

$\text{Methods of computing annual depreciation include:}$

$\text{Straight Line Method}.$

$\text{Sum of the years digit method}.$

$\text{Reducing Balance method}.$

$\text{Moving averages method is a time series technique, not a depreciation method}.$

$\text{Correct option: Moving averages method}.$