Sale of a fixed asset is:
Capital expenditure
Capital receipt
Revenue expenditure
Revenue receipt
If the accounting records continue to show the asset in cost price, this is:
Correct as per accounting standards
Easy to compute
Misleading the accounting information
Help to calculate in exact manner
The records can show only the estimated value of assets because of :
Loss
Reduction in tax
By law of business
Depreciation
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
The result of wear and tear is due to:
Passage of time
Physical deterioration
Gains
When a fixed asset is sold, it should be recorded in:
Sales account
Purchase account
Disposal of fixed asset
Equity
If a lease has a fixed life of a set number of years, this is due to:
Economic reason
Once a method has been selected for a particular fixed asset, this is applied for:
A year
All years
One month
Half year
The asset value figure of cost less depreciation is:
Diminishing balance method
Written down value method
Residual method
