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
Depreciation of an year is included in the:
Profit and loss account
Balance sheet
Income and expenditure account
Non recurring expenses account
The asset value figure of cost less depreciation is:
Diminishing balance method
Written down value method
Residual method
Revaluation method
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
Purchase of fixed asset is a:
Revenue expenditure
Revenue loss
Capital expenditure
Capital loss
Once a method has been selected for a particular fixed asset, this is applied for:
A year
All years
One month
Half year
Depreciation is an:
Income
Expenditure
Non-monetary expenses
Monetary expenses
The result of wear and tear is due to:
Passage of time
Physical deterioration
Loss
Gains
Asset is completely written off is the main advantage of:
Fixed instalment method
Net book value method
Depreciation method
Final accounts are prepared from:
Real account
Trial balance
