The other name of reducing balance method is:
Diminishing balance method
Straight line balance method
Fixed instalment method
Residual method
If a lease has a fixed life of a set number of years, this is due to:
Physical deterioration
Passage of time
Economic reason
Loss
The another name of straight line method.
Diminishing method
Written off method
Reducing method
Fixed assets may fail to fulfil their duty in long run. This is due to:
Profit
How many ledger accounts does each type of fixed asset have?
2
4
6
8
How is depreciation shown in the profit and loss account?
As income
As loss
As expense
As profit
Sale of a fixed asset is:
Capital expenditure
Capital receipt
Revenue expenditure
Revenue receipt
The result of wear and tear is:
Gains
All transactions should be recorded at their acquisition cost. This is in accordance with the:
Principle of prudence
Historical cost
Matching principle
Materiality principle
In balance sheet, fixed assets are recorded at a figure less than the cost price. This is known as:
Depreciation
Written down value
Cost price
Income price
