Financial Accounting WASSCE (SC), 2016

Section A: Theory of Financial Accounting

 

Question 4

    (a) What is depreciation of an asset?

     

    (b) List three causes of depreciation.

     

    (c) Explain the following methods of depreciation:

    (i) straight line;

    (ii) reducing balance;

    (iii) revaluation.

Observation

Majority of the candidates that attempted this question performed well in (a) and (b) but could not explained methods of depreciation. The expected answers to 4(c) included: