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
Which is connected to fixed assets such as wells and mines?
Depletion
Passage of time
Depreciation
Prudence
The asset account always have:
Credit balance
No balance
Debit balance
Low balance
How many ledger accounts does each type of fixed asset have?
2
4
6
8
Fixed assets may fail to fulfil their duty in long run. This is due to:
Economic reason
Physical deterioration
Profit
How many methods are there for recording the depreciation in ledger?
1
3
Sale of a fixed asset is:
Capital expenditure
Capital receipt
Revenue expenditure
Revenue receipt
How will depreciation affect the net profit?
Increases
Decreases
Remain same
Not affected
The result of wear and tear is due to:
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
