Which of the following methods of depreciation is not recognized by Income Tax Law?
  • Straight line Method
  • None of these
  • Both, Straight Line and Diminishing Balance Methods
  • Diminishing Balance Method
Asset Disposal A/c is prepared when :
  • Provision for Depreciation A/c is prepared
  • Asset A/c is prepared
  • Profit & Loss A/c is prepared
  • Depreciation A/c is prepared
Which of the following is the example of Capital Reserve?
  • Workmen’s Compensation Fund
  • None of these
  • Premium Received on issue of shares or debentures
  • General Reserve
Which of the following is the example of Revenue Reserve?
  • Profit on Redemption of Debentures
  • Profit on Revaluation of Fixed
  • Investment Fluctuation Fund
  • Profit on Re-issue of forfeited shares
Dividend Equalisation Reserve is :
  • Specific Reserve
  • None of these
  • Secret Reserve
  • General Reserve
General Reserves are shown in :
  • Revaluation Account
  • Profit and Loss Account
  • None of these
  • Balance Sheet
According to Companies Act, 1956 Secret Reserves can be created by:
  • Only Private Company
  • Banking and insurance companies
  • Only Public Company
  • Companies Registered under Companies Act
The loss on sale of an asset is debited to:
  • Profit and Loss Account
  • Trial Balance Cr. Side
  • Balance Sheet
  • Trading Account
Depreciation is Charged on :
  • Current Assets
  • Fixed Tangible Assets
  • None of these
  • Both Current and Fixed Assets
At the end of the year, Depreciation Account is transferred to :
  • Balance Sheet
  • Trading Account
  • Profit & Loss Appropriation Account
  • Profit & Loss Account
Provision is created by debiting :
  • Profit and Loss Account
  • None of these
  • Profit and Loss Appropriation Account
  • Trading Account
The cause of Depreciation is :
  • Wear and tear
  • Obsolescence
  • All of these
  • Usage of Asset
Depreciation is a process of :
  • Allocation
  • Valuation
  • None of these
  • Depletion
Under Reducing Balance Method, depreciation to be charged :
  • Scrap Value
  • None of these
  • Real Value
  • Original value
The depreciation charged on an asset will be credited to :
  • Depreciation A/c
  • Asset A/c
  • Bank A/c
  • Cash A/c
Every fixed asset loses its value due to use or other reasons. This decline in the value of asset is known as
  • Amortization
  • Provisions
  • Depreciation
  • Devaluation
Following are the causes of Depreciation except
  • Wear and tear due to use or passage of time.
  • normal factors
  • Expiration of legal rights.
  • Obsolescence.
An alternative term used for accumulated depreciation expenses?
  • Provision for depreciation
  • Cumulative depreciation
  • Targeted depreciation
  • Depletion
Depreciation charged under diminishing method
  • Increase every year
  • Decrease every year
  • Increase in one year and decrease another year
  • Same every year
Which of the following is not a type of reserve
  • Provision for bad debt
  • General reserve
  • Workmen compensation fund
  • Retained earnings
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