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Question-1
Depreciation is related to actual working time of the asset is the advantage of:
(A)
Depletion Method
(B)
Revaluation Method
(C)
Depreciation Fund Method
(D)
Machine Hour Rate Method
Question-2
Which method is useful for assets of lesser value such as furniture, patents etc?
(A)
Fixed installment method
(B)
Annuity method
(C)
Diminishing method
(D)
Depletion method
Question-3
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-4
Investment in securities is the basic feature of:
(A)
Insurance policy method
(B)
Sinking fund method
(C)
Sum of year’s digit method
(D)
Annuity method
Question-5
Under which method, the amount realised at the end of the life of the asset is fixed?
(A)
Machine hour rate method
(B)
Annuity method
(C)
Insurance policy method
(D)
Revaluation method
Question-6
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-7
“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-8
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-9
Which of the following accounting concepts or principles require the calculation of depreciation of the fixed assets?
(A)
Prudence concept
(B)
Accrual concept
(C)
Consistency concept
(D)
Matching concept
Question-10
Total depreciation cannot exceed its:
(A)
Scrap value
(B)
Cost Value
(C)
Market value
(D)
Depreciable value
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Cambridge Advanced Grade 12
IGCSE
Practice in Related Chapters
Depreciation and Disposal of Fixed Asset
Bad Debts and Provision for Doubtful Debts
Control Accounts
Petty Cash Books
Incomplete Records
Accounts of Clubs and Societies
Partnership Accounts -PART A
Books of Prime Entry
Accounts of Manufacturing Business
Introduction to Accounting
Double Entry Book Keeping
The Trail Balance
Final Accounts
Accruals and prepayments
Accounting Rules
Bank Reconciliation Statement
Business Documents
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