The result of wear and tear is:
Passage of time
Physical deterioration
Loss
Gains
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
Purchase of fixed asset is a:
Revenue expenditure
Revenue loss
Capital expenditure
Capital loss
Depreciation does not involve out flow of money because:
It is a non-monetary expense
It is an income
It is a capital expenditure
It is prudence
Estimated loss in the fixed asset over a period of time is:
Loss of fixed asset
Depreciation
Appreciation
Diminution
The assets are valued at the end of each financial year. This is:
Revaluation method
Diminishing method
Written off method
Straight line method
The asset account always have:
Credit balance
No balance
Debit balance
Low balance
Which is connected to fixed assets such as wells and mines?
Depletion
Prudence
All transactions should be recorded at their acquisition cost. This is in accordance with the:
Principle of prudence
Historical cost
Matching principle
Materiality principle
