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Question-1
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-2
Which of the following is the correct formula for calculating depreciation using service hours method?
(A)
Depreciation= (Cost - Scrap 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-3
Under which method, investments are made at the end of the accounting period?
(A)
Revaluation Method
(B)
Sinking Fund Method
(C)
Annuity Method
(D)
Depreciation Fund Method
Question-4
Depreciation is:
(A)
An income
(B)
An asset
(C)
A loss
(D)
A liability
Question-5
Which of the following is NOT correct about income tax?
(A)
Different companies pay tax on different rates.
(B)
It is treated as an expense and debited in Profit & Loss account.
(C)
When financial statements are prepared, an estimate of expected tax liability is made.
(D)
It is treated as an expense and credited in Profit & Loss account.
Question-6
Assets acquired for prolonged use are known as:
(A)
Current assets
(B)
Fixed assets
(C)
Tangible assets
(D)
Intangible assets
Question-7
Under which method, the value of asset cannot be written down to zero?
(A)
Fixed Installment method
(B)
Annuity method
(C)
Diminishing balance method
(D)
Revaluation method
Question-8
A summarized record of transactions related to individuals or things is called a/an:
(A)
Account
(B)
Voucher
(C)
Journal
(D)
Trial balance
Question-9
“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-10
The purchase price of a software that will be used for more than 12 months should be regarded as:
(A)
A revenue expenditure
(B)
A capital expenditure
(C)
A long term expense
(D)
An accounting period expense
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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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