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Question-1
Under which method, the calculation of depreciation is easy as compared to many other methods of depreciation?
(A)
Fixed Installment Method
(B)
Diminishing Balance Method
(C)
Depreciation Fund Method
(D)
Annuity Method
Question-2
Under which method, the value of asset can be written down to zero or scrap value?
(A)
Reducing balance method
(B)
Unit of activity method
(C)
Straight line method
(D)
Double declining balance method
Question-3
What is depreciation?
(A)
Cost of a fixed asset
(B)
Cost of a fixed asset’s repair
(C)
The residual value of a fixed asset
(D)
Portion of a fixed asset’s cost consumed during the current accounting period
Question-4
Which of the following account is affected from the drawings of cash in sole- proprietorship business?
(A)
Capital account
(B)
Shareholder account
(C)
Liability account
(D)
Expense account
Question-5
Which of the following financial statement shows the financial health of an organization at a stated period of time?
(A)
Balance sheet
(B)
Trading and Profit & Loss account
(C)
Cash Flow statement
(D)
Statement of retained earnings
Question-6
Process of becoming out of date or obsolete is termed as:
(A)
Physical deterioration
(B)
Depletion
(C)
Obsolescence
(D)
Amortization
Question-7
Under which method, depreciation is calculated on the original cost of the asset?
(A)
Fixed Installment Method
(B)
Diminishing Balance Method
(C)
Annuity Method
(D)
Revaluation Method
Question-8
Which method is useful to the assets with more value and longer life such as building, machinery etc?
(A)
Diminishing Balance Method
(B)
Annuity Method
(C)
Revaluation Method
(D)
Mileage Method
Question-9
Under which method of depreciation, the amount of depreciation goes on decreasing year by year?
(A)
Diminishing Balance Method
(B)
Annuity Method
(C)
Revaluation Method
(D)
Fixed Installment method
Question-10
The main objective of providing depreciation is:
(A)
To calculate true profit
(B)
To show true financial position
(C)
To reduce tax
(D)
To provide funds for replacement
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Cambridge Advanced Grade 11
IGCSE
Practice in Related Chapters
Control Accounts
Depreciation and Disposal of Fixed Asset
Introduction to Accounting
Double Entry Book Keeping
The Trial Balance
Incomplete Records
Accounts of Clubs and Societies
Partnership Accounts -PART A
Accounts of Manufacturing Business
Bad Debts and Provision For Doubtful Debts
Books of Prime Entry
Final Accounts
Accruals and prepayments
Accounting Rules
Bank Reconciliation Statement
Petty Cash Books
Business Documents
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