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- 1. Multiple Choice
Which method of depreciation is applicable for car and computer
Reducing balance
Straight line
Revaluation
Reducing balance and Straight line
- 2. Multiple Choice
Land is depreciated by
Straight line
Reducing balance
None
Revaluation
- 3. Multiple Choice
Which method of depreciation has residual value after charging full depreciation
Straight line
Reducing balance
Revaluation
None
- 4. Multiple Choice
Which method charges more depreciation in the initial years
Straight line
Reducing balance
None
Revaluation
- 5. Fill in the Blank
Revaluation method is calculated by ....................plus..................minus................
- 6. Multiple Choice
Accounting principles applicable in depreciation
Matching
Prudence
Consistency
All 3
- 7. Multiple Choice
Disposal of Asset is opened when
Asset is sold
Asset is purchased
Asset is scraped
All 3
- 8. Multiple Choice
In the Disposal Account how manty entries are there
1
2
3
4
- 9. Multiple Choice
Net Asset Value is equal to
Cost
Cost less depreciation for the year
Cost less accumulated depreciation
Cost less Value of asset sold
- 10. Multiple Choice
A fixed amount of depreciation is charged under
Straight line
Reducing balance
Revaluation
None
- 11. Multiple Choice
Provision for depreciation is shown in
Income Statement
Statement of Financial Position
Both statement
None
- 12. Fill in the Blank
Depreciation for the year is shown in ................ and accumulated depreciation is shown in .................
- 13. Multiple Choice
If repairs to machinery is debited to machinery account then
Machinery is overstated
Depreciation is overstated
Profit for the year is overstated by repairs amount
Profit for the year is overstated by repairs minus extra depreciation
- 14. Multiple Choice
Profit on disposal of asset occurs when
Sale value is more than cost of the asset
Sale value is more than sum of cost and depreciation charged
Sale value plus depreciation charged is more than cost
Sale value is more than cost and depreciation charged
- 15. Multiple Choice
When an asset is sold on profit
Profit is debited to Income Statement
Profit is credited to Income Statement
Sale value is credited to Income Statement
None
- 16. Multiple Choice
When an asset is purchased asset account is debited and
Cash account is credited
Bank account is credited
Vendor account is credited
All 3
- 17. Multiple Choice
Depreciation is charged
in the middle of accounting period
when an asset is sold
when an asset is purchased
at the end of the accounting period
- 18. Multiple Choice
Which method of depreciation is applied for packing cases, loose tools
Straight line method
Reducing balance method
Revaluation method
Sum of the years digits method
- 19. Multiple Choice
When depreciation is charged
Debit provision for depreciation and credit asset
Debit asset and credit provision for depreciation
Debit income statement and credit provision for depreciation
Debit provision for depreciation and credit income statement
- 20. Multiple Choice
Depreciation occurs due to
Wear and tear
Time lapse
Obsolescnce
All 3
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