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Annuity method is designed for which of the following : 
  • a)
    Leases 
  • b)
    Intangibles 
  • c)
    Fixed Assets 
  • d)
    Any of above 
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Annuity method is designed for which of the following :a)Leasesb)Intan...
Annuity method is designed for which of the following

Introduction:
Annuity method is a technique used in accounting to calculate the present value of a series of cash flows that are expected to occur over a certain period of time. It is used primarily for lease accounting.

Annuity Method for Leases:
The annuity method is designed for lease accounting. It is used to calculate the present value of lease payments. This method is used when the lease payments are equal in amount and are made at equal intervals over the lease term. The annuity method calculates the present value of the lease payments by discounting them to their present value using the interest rate implicit in the lease.

Other Uses of Annuity Method:
The annuity method can also be used for other types of cash flows that are equal in amount and are made at equal intervals over a certain period of time. For example, the annuity method can be used to calculate the present value of payments for a loan or an annuity.

Conclusion:
In conclusion, the annuity method is designed for lease accounting and is used to calculate the present value of lease payments. It can also be used for other types of cash flows that are equal in amount and are made at equal intervals over a certain period of time.
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Community Answer
Annuity method is designed for which of the following :a)Leasesb)Intan...
This is a process of calculating depreciation on the assets which have more life span bought under any lease basis...
But I think answer is(c) because it is calculated on fixed assets..
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Annuity method is designed for which of the following :a)Leasesb)Intangiblesc)Fixed Assetsd)Any of aboveCorrect answer is option 'A'. Can you explain this answer?
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