Which of the following is NOT a method of calculating depreciation? MCQ with Answer and Explanation

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Which of the following is NOT a method of calculating depreciation?

A. Diminishing Balance Method

B. Sum of the Years' Digits Method

C. LIFO Method

D. Straight Line Method

Answer: Option C

Solution (By JKSSB Mock Tests)

LIFO (Last In, First Out) is an inventory valuation method, not a method for calculating depreciation.

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Which of the following is a capital profit?

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Correct Answer: Option B

Explanation:
Profit on sale of a capital asset (like long-term investment) is capital profit. Profit on sale of goods is revenue.

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Correct Answer: Option D

Explanation:
Bank charges increase the overdraft in the pass book. To arrive at the cash book overdraft (which is lower since it missed the charge), it must be deducted.

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Correct Answer: Option A

Explanation:
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