Cost of fixed asset spread over year is known as:
Depreciation
Matching
Disposal
Expenses
Purchase of fixed asset is a:
Revenue expenditure
Revenue loss
Capital expenditure
Capital loss
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
Estimated loss in the fixed asset over a period of time is:
Loss of fixed asset
Appreciation
Diminution
The other name of reducing balance method is:
Diminishing balance method
Straight line balance method
Fixed instalment method
Residual method
The difference between balance of asset and provision for depreciation of asset account will show:
Net book value
Written down value
Residual
Calculation of a different value each year with the same percentage of depreciation is:
Straight line method
Net book value method
Reducing balance method
The records can show only the estimated value of assets because of :
Reduction in the tax
By law of business
The result of wear and tear is:
Gains
In balance sheet, fixed assets are recorded at a figure less than the cost price. This is known as:
Cost price
Income price
