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Question-1
In the calculation of depreciation, all of the following items are actually estimates except:
(A)
Useful life
(B)
Residual value
(C)
Historical cost
(D)
Salvage value
Question-2
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-3
Which of the following is the correct formula for calculating depreciation using service hours method?
(A)
Depreciation= (Cost - Scrape value) / Total hours X Actual hours
(B)
Depreciation= (Cost - Accumulated depreciation) / Total hours X Actual hours
(C)
Depreciation= (Cost - Accumulated depreciation) / Total hours X Total hours
(D)
Depreciation=(Cost - Scrape value) / Actual hours X Total hours
Question-4
Scrap value can also be called as:
(A)
Realisable value
(B)
Break up value
(C)
Unrealisable value
(D)
Resale value
Question-5
Loss on sale of plant and machinery should be written off against:
(A)
Share premium
(B)
Depreciation fund account
(C)
Sale account
(D)
Profit & loss account
Question-6
“The life of the asset can be measured in terms of hours” is the main disadvantage of:
(A)
Annuity Method
(B)
Mileage Method
(C)
Machine hour rate Method
(D)
Depletion Method
Question-7
XYZ firm has imported a machine from abroad. Which of the following is NOT the element of machine’s cost?
(A)
Purchase price of machine
(B)
Import duty
(C)
Demurrage charges
(D)
Refundable tax
Question-8
When a liability is reduced or decreased, it is recorded on the:
(A)
Right or debit side of the account
(B)
Left or debit side of the account
(C)
Left or credit side of the account
(D)
Right or credit side of the account
Question-9
An informal accounting statement that lists the ledger account balances at a point in time and compares the total of debit balances with the total of credit balances is known as:
(A)
Income Statement
(B)
Balance Sheet
(C)
Trial Balance
(D)
Cash Book
Question-10
Cost incurred for the maintenance of shop is considered as:
(A)
Deferred expense
(B)
Capital expense
(C)
Revenue expense
(D)
Preliminary expense
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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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