Q.1
The value of an asset determined by tax authorities for the purpose of calculating taxes.
  • assessed value
  • book value of a plant asset
  • depletion
  • gain on plant asset
Q.2
The original cost of a plant asset minus accumulated depreciation.
  • assessed value
  • half-year convention
  • current asset
  • book value of a plant asset
Q.3
Depreciation is the process of -
  • Valuation of asset
  • Allocation of the cost of asset
  • Valuation and allocation of the cost of asset
  • None of the above
Q.4
Main objective of charging depreciation is-
  • Ascertaining true profit or loss
  • Ascertaining true financial position
  • Ascertaining true cost of production
  • All of the above
Q.5
Depreciation arises due to -
  • Fluctuations
  • Fall in the value of money
  • Temporary fall in the market value of asset
  • Physical Wear and tear
Q.6
Depreciation is provided on -
  • Current assets
  • Fictitious assets
  • Fixed assets
  • Intangible assets
Q.7
Factors taken into consideration for providing depreciation are -
  • Total cost of assets
  • Estimated useful life of the asset
  • Estimated scrap value of the asset
  • All of the above
Q.8
Depreciation arises because of -
  • Obsolescence
  • Constant use of assets
  • expiry of time
  • All of these
Q.9
Characteristic of a depreciation is -
  • Decline in the value of assets
  • Depreciation is a permanent nature
  • Depreciation is a known case expense
  • All of these
Q.10
S=RM2,000C=RM25,000n=6 yearsFind the annual rate of depreciation using the reducing balance method.
  • 9.8%
  • 15.76%
  • 20.36%
  • 34.36%
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