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- 1. Multiple Choice
Depreciation on the diminishing balance method of Rs. 2000 at the rate of 10% p.a after three years will be: 2015
Rs. 1400
Rs. 1458
Rs. 542
None of these
- 2. Multiple Choice
Depreciation of an asset should not exceed the: 2015
Original cost
Depreciable value
Market price
Scrap value
- 3. Multiple Choice
Loss on the sale of machinery should be written off against: 2016
Share premium account
Sales account
Depreciation fund account
None of these
- 4. Multiple Choice
The period during which the asset will help in earning income of business is known as: 2016
Consumed life
Expired life
Exhausted life
Working life
- 5. Multiple Choice
If original cost of an asset is Rs. 10,000, rate of depreciation 10 % p.a. then the value of depreciation under diminishing balance method after third year will be: 2016
Rs. 1000
Rs. 900
Rs. 700
Rs. 810
- 6. Multiple Choice
The physical deterioration in assets due to use in business is called: 2017
Depletion
Obsolescence
Wear and tear
Accident
- 7. Multiple Choice
The value of Assets may rise or fall on account of: 2018
Depreciation
Depletion
Fluctuation
Amortization
- 8. Multiple Choice
In straight line method, depreciation is calculated on: 2018
Book value
Market value
Scrap value
Original cost
- 9. Multiple Choice
Original cost of machinery Rs. 5,500, scrap value Rs. 500, the useful life of machinery 10 years, then the annual value of deprecation will be: 2018
Rs. 500
Rs. 550
Rs. 1000
Rs. 1500
- 10. Multiple Choice
Depreciation arises because of; 2019
Fall in the market value of an asset
Physical wear and tear
Fall in the value of money
Increase in the value of money
- 11. Multiple Choice
The decreases in the value of intangible asset is known as: 2019
Amortization
Depreciation
Appreciation
Depletion
- 12. Multiple Choice
What is the total amount whatsoever received by selling used or obsolete asset or its spare parts known as?
Scrap Value
Salvage Value
Residual Value
All of these
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