The result of wear and tear is:
Passage of time
Physical deterioration
Loss
Gains
Diminishing balance method of depreciation is calculated with:
Full cost of the asset
Cost of the asset at that year
Cost of the asset
Net value of the asset
The records can show only the estimated value of assets because of :
Reduction in the tax
By law of business
Depreciation
How many methods are there for recording the depreciation in ledger?
1
2
3
4
How is depreciation shown in the profit and loss account?
As income
As loss
As expense
As profit
If a lease has a fixed life of a set number of years, this is due to:
Economic reason
What is the necessity of year end adjustments in final accounts?
More accurate view on the financial position of business
Mandatory by accounting principle
It is a custom
Depend on the business requirement
Final accounts are prepared from:
Balance sheet
Income and expenditure account
Real account
Trial balance
Once a method has been selected for a particular fixed assets, this is applied for:
A year
All years
One month
Half year
Calculation of a different value each year with the same percentage of depreciation is:
Straight line method
Fixed instalment method
Net book value method
Reducing balance method
