The result of wear and tear is due to:
Passage of time
Physical deterioration
Loss
Gains
The other name of reducing balance method is:
Diminishing balance method
Straight line balance method
Fixed instalment method
Residual method
Asset is completely written off is the main advantage of:
Net book value method
Depreciation method
How many methods are there for recording the depreciation in ledger?
1
2
3
4
The difference between balance of asset and provision for depreciation of asset account will show:
Net book value
Written down value
Residual
Depreciation
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:
Economic reason
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.
All transactions should be recorded at their acquisition cost. This is in accordance with the:
Principle of prudence
Historical cost
Matching principle
Materiality principle
The asset value figure of cost less depreciation is:
Written down value method
Revaluation method
