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Question-1
"The charge of depreciation to profit and loss account is equal in respect of an asset till the end of its useful life.”This is the main advantage of:
(A)
Depletion Method
(B)
Revaluation Method
(C)
Fixed Installment Method
(D)
Diminishing Balance Method
Question-2
Assets acquired for prolonged use are known as:
(A)
Current Assets
(B)
Fixed Assets
(C)
Tangible Assets
(D)
Intangible Assets
Question-3
The total cost of the asset is evenly spread over the economic life of the asset and such annual charge includes cost of depreciation and repairs. This is the advantage of:
(A)
Double Declining Balance Method
(B)
Depletion Method
(C)
Revaluation Method
(D)
Mileage Method
Question-4
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-5
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-6
Depreciable amount + Residual value of a fixed asset =?
(A)
Depreciation expenses
(B)
Accumulated depreciation
(C)
Cost of the fixed asset
(D)
Future economic benefits of a fixed asset
Question-7
Under which method, the amount realized is affected by fluctuations in interest rate and value of securities?
(A)
Sinking Fund Method
(B)
Revaluation Method
(C)
Insurance Policy Method
(D)
Annuity Method
Question-8
Interest is an integral part of:
(A)
Insurance Policy Method
(B)
Sinking Fund Method
(C)
Annuity Method
(D)
Revaluation Method
Question-9
The book value of an asset is obtained by deducting depreciation from its:
(A)
Market value
(B)
Scrap value
(C)
Market + Cost price
(D)
Cost
Question-10
Interest charges on the amount spent on an asset is not considered on calculating depreciation.This is the disadvantage of:
(A)
Diminishing Balance Method
(B)
Annuity Method
(C)
Straight line Method
(D)
Depreciation Fund Method
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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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