| 1 |
Under diminhing balance method, depreciationis calculated on. |
- A. The original cost
- B. The scrape value
- C. Book value
- D. All of the above
|
| 2 |
Another name of diminishing balance method of depreciation is the |
- A. Reducing balance method
- B. Sinking fund method
- C. Straight line mehod
- D. Revaluation method
|
| 3 |
Under annuity method the amount of depreciation is. |
- A. Increasing every year
- B. Decreasing every year
- C. Fixed for all the year
- D. None of these
|
| 4 |
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
|
| 5 |
Depreciation caused by some external amoutn of anual depreciation gradully. |
- A. Increase
- B. Decrease
- C. Remain constant
- D. None of these
|
| 6 |
The method is specially suited to natural surces is said to be |
- A. Annuity method
- B. Depletion method
- C. Revalution method
- D. Sum of digit method
|
| 7 |
The gradual decrease in the value of the fixex assets due to its use in the business is called. |
- A. Depreciation
- B. Depletion
- C. Amorization
- D. Fluctuation
|
| 8 |
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
|
| 9 |
The term Depletion is used with reference to. |
- A. Tangible assets
- B. Intangible assets
- C. Current assets
- D. Fixex assets
|
| 10 |
The assets which have not got physical existence are called. |
- A. Intangible assets
- B. Intangible fixed assets
- C. Current assets
- D. Tangible fixed assets
|
