General Manager Finanace cum Finance Executive Interview Questions and Answers

Depreciation rate is the percentage at which an asset loses its value over time.

• Depreciation rate is determined by factors such as the asset's useful life, salvage value, and method of depreciation.

• Common methods of depreciation include straight-line, declining balance, and units of production.

• For example, if a company purchases a machine for $10,000 with a useful life of 5 years and no salvage value, the annual depreciation rate would be 20% ($10,000 / 5 years).