MCQ on depreciation (Part-2 From Q-21 to 40)

 MCQ on Depreciation (Part-1 from Question No. 21 to  40)


21. The asset account appears in the books at original cost when a ______.

A. P & L account is maintained.

B. balance sheet is maintained.

C. provision for depreciation account is maintained.

D. provision for depreciation account is not maintained.

22. The value of asset can be reduced to zero under this method _____.

A. straight line method .

B. written down value method.

C. annuity method.

D. depreciation fund method.

23. The balance in the asset account will not be reduced to zero under this method _____.

A. straight line method .

B. written down value method.

C. annuity method.

D. depreciation fund method.

24. Income tax authorities recognize this method ______.

A. straight line method .

B. written down value method.

C. annuity method.

D. depreciation fund method.

25. Under which method of depreciation, the earlier year of the life of the asset, profits are more _____.

A. straight line method.

B. written down value method.

C. annuity method.

D. depreciation fund method.

26. If debit side of receipt and payment account exceeds credit, it represents __________.

A. Cash at bank

B. Bank overdraft

C. Deficit balance

D. Surplus balance

27. Diminishing balance method is also called _________.

A. written down value method .

B. annuity method.

C. depreciation fund method.

D. Fixed installment method.

28. Deficit balance can be shown in balance sheet as

A. Liability

B. Assets

C. Owner’s equity

D. None of above

29. If debit side of income and expenditure account is greater it is termed as

A. Excess of income over expenditure

B. Net income

C. Surplus balance

D. Deficit balance

30. Under annuity method the amount of depreciation is found out from _____.

A. log tables.

B. sinking fund tables.

C. annuity tables.

D. present value tables.

 31. Depreciation fund is also called ______.

A. reserve fund.

B. compensation fund.

C. workers fund.

D. sinking fund.

32. Under depreciation fund method, the amount of depreciation is calculated with reference to ________.

A. log tables

B. sinking fund tables

C. annuity tables

D. present value tables

33. Under depreciation fund method depreciation is charged to ______.

A. profit and loss account.

B. trading account.

C. balance sheet.

D. p & l appropriation account.

34. Reciept and payment account includes _________.

A. Revenue items

B. Capital items

C. Both capital and revenue items

D. None of above

35. The receipts and payments account of a non-profit organization is a __________.

A. Nominal account

B. Real account

C. Income statement account

D. Financial statement

36. The difference between the book value at the beginning and at the end (revaluation amount) is __________.

A. depreciation.

B. appreciation.

C. reduction.

D. computation.

37. An advance receipt of subscription from a member of the non-profit organization is considered as an __________.

A. Expense

B. Liability

C. Equity

D. Asset

38. Income and expenditure account is based on _________.

A. Cash accounting

B. Accrual accounting

C. Government accounting

D. Management accounting

39. Expenses which can be directly identified with or incurred for particular department are called __________.

A. direct expenses. .

B. indirect expenses.

C. monthly expenses.

D. weekly expenses.

40. Expenses which cannot be identified with a particular department are called_______.

A. direct expenses.

B. indirect expenses.

C. monthly expenses.

D. weekly expenses.








 




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