| 1 |
Depreciation caused by some external amoutn of anual depreciation gradully. |
- A. Increase
- B. Decrease
- C. Remain constant
- D. None of these
|
| 2 |
Depreciation is charged at fixex rate on the reducing balance, under the. |
- A. Written - down value method
- B. Annuity method
- C. Sinking fund method
- D. Depletion method
|
| 3 |
Interest is debited to assets account uder the. |
- A. Annuity method
- B. Depreciation fund method
- C. Insurance policy method
- D. Depletion method
|
| 4 |
Depreciation arise because of |
- A. Due to fall in the market value of fixex assets
- B. Due to physical wear and tear of the assets
- C. Due to fall in the market value
- D. None of these
|
| 5 |
Which of the following term is used for the depreciation of wasting assets such as timber tree, mines, oil wells etc. |
- A. Depreciation
- B. Depletion
- C. Amortization
- D. None of these
|
| 6 |
Depreciation is |
- A. An Income
- B. An expense
- C. A loss
- D. A liability
|
| 7 |
The amount charged to depreciation goes on declining in. |
- A. Diminishing balance method
- B. Fixex instaliment method
- C. Annuity method
- D. Depreciation fund method
|
| 8 |
Under the straight line method of charging depreciation, the amount of deperciation . |
- A. Decrease every year
- B. Increase every year
- C. <div>Remain constant every year</div>
- D. None of the above
|
| 9 |
Under diminhing balance method, depreciationis calculated on. |
- A. The original cost
- B. The scrape value
- C. Book value
- D. All of the above
|
| 10 |
The objective of charging depreciation on fixed assets is. |
- A. Calculate the true net profit
- B. To provide funds for the replacement
- C. To redue the tax libility
- D. All of the above
|
