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प्रश्न
Which depreciation method helps a firm accumulate funds for replacing an asset after its useful life?
पर्याय
Straight-Line Method
Sinking Fund (Depreciation Fund) Method
Machine Hour Rate Method
Double Declining Balance Method
MCQ
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उत्तर
Sinking Fund (Depreciation Fund) Method
Explanation:
Under this method, a fixed amount is set aside annually and invested to build a replacement fund by the end of the asset’s life.
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