| 1 |
Under which method the book value of the fixed assets acn be reduce to zero after certain year |
- A. Diminishing balance method
- B. Straght line method
- C. Depreciation find fond
- D. Deflation method
|
| 2 |
Under aunuity method, the annual charger for depreciation wil be debited to. |
- A. Assets account
- B. Depreciation account
- C. Interest account
- D. None of these
|
| 3 |
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
|
| 4 |
The value of an asset at the end of the working life is called. |
- A. Book value
- B. Scrape value
- C. Market value
- D. None of these
|
| 5 |
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
|
| 6 |
The amount charged as depreciation goes on declining in |
- A. Depletion fund method
- B. Auunity method
- C. Diminishing balance method
- D. Straiight line method
|
| 7 |
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
|
| 8 |
Depreciation is charged on. |
- A. Fixed tangible assets only
- B. Fixex intangible assets only
- C. Current assets only
- D. None of these
|
| 9 |
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
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| 10 |
Under the diminishing balance method the depreciationis calculated on . |
- A. Book value
- B. Original value
- C. Residual value
- D. None of these
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