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1. Every fixed asset loses its value due to use or other reasons. This decline in the value of asset is known as A. Amortization B. Provisions C. Depreciation D. Devaluation
A. A
B. B
C. C
D. D
2. Following are the causes of Depreciation except A. Wear and tear due to use or passage of time. B. normal factors C. Expiration of legal rights. D. Obsolescence.
A. A
B. B
C. C
D. D
3. The term depletion is used for : A. Natural resources B. Fixed asset C. Liabilities D. Intangible assets
A. A
B. B
C. C
D. D
4. An alternative term used for accumulated depreciation expenses? A. Provision for depreciation B. Cumulative depreciation C. Targeted depreciation D. Depletion
A. A
B. B
C. C
D. D
5. Depreciation charged under diminishing method A. Increase every year B. Decrease every year C. Increase in one year and decrease another year D. Same every year
A. A
B. B
C. C
D. D
6. Which of the following is not a type of reserve A. Provision for bad debtB. General reserveC. Workmen compensation fundD. Retained earnings
A. A
B. B
C. C
D. D
7. 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. A
B. B
C. C
D. D
8. An alternative term used for accumulated depreciation expenses? A. Provision for depreciationB. DepletionC. Targeted depreciationD. Cumulative depreciation
A. A
B. B
C. C
D. D
9. 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. A
B. B
C. C
D. D
10. Under which depreciation method the amount of depreciation expenses remains same throughout the useful life of a fixed asset A. Straight line methodB. Reducing balance methodC. Number of units produced methodD. Machine hours method
A. A
B. B
C. C
D. D
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