Every fixed asset loses its value due to use or other reasons. This decline in the value of asset is known asA. AmortizationB. ProvisionsC. DepreciationD. Devaluation
  • A
  • B
  • C
  • D
Following are the causes of Depreciation exceptA. Wear and tear due to use or passage of time.B. normal factorsC. Expiration of legal rights.D. Obsolescence.
  • A
  • B
  • C
  • D
The term depletion is used for :A. Natural resourcesB. Fixed assetC. LiabilitiesD. Intangible assets
  • A
  • B
  • C
  • D
An alternative term used for accumulated depreciation expenses?A. Provision for depreciationB. Cumulative depreciationC. Targeted depreciationD. Depletion
  • A
  • B
  • C
  • D
Depreciation charged under diminishing methodA. Increase every yearB. Decrease every yearC. Increase in one year and decrease another yearD. Same every year
  • A
  • B
  • C
  • D
Which of the following is not a type of reserveA.  Provision for bad debtB.  General reserveC. Workmen compensation fundD. Retained earnings
  • A
  • B
  • C
  • D
What is depreciation?A. Cost of using a fixed assetB. The value of assetC. Portion of a fixed assets cost consumed during the current accountingD. Cost of fixed asset’s repair
  • A
  • B
  • C
  • D
An alternative term used for accumulated depreciation expenses?A. Provision for depreciationB. DepletionC. Targeted depreciationD. Cumulative depreciation
  • A
  • B
  • C
  • D
What is the rate of charging depreciation under diminishing method?A. 12% p.a.B. 15% p.a.C. 10% p.a.D. Not fixed
  • A
  • B
  • C
  • D
Under which depreciation method the amount of depreciation expenses remains same throughout the useful life of a fixed assetA. Straight line methodB. Reducing balance methodC. Number of units produced methodD. Machine hours method
  • A
  • B
  • C
  • D
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