Loss on sale of fixed asset appear on the
Credit side of Depreciation account
Debit side of fixed asset account
Credit side of fixed asset account
None of these
Depreciation is a process of
Valuation
Allocation
Both valuation and allocation
Obsolescence and inadequacy are called the ____ factors causing depreciation.
Social
Natural
Economic
The amount of depreciation charged on a machinery will be debited to
Machinery account
Depreciation account
Cash account
Profit and Loss account
The estimated sale value of the asset at the end of it's economic life is called
Book value
Residual value
No value
Goodwill
Depreciation is calculated on the book value of the asset each year is under
Straight line method
Premium method
Written down value method
Annuity method
Total amount of depreciation provided on the written down value method at the rate of 10% p.a on Rs 10,000 for first three years will be
Rs 2,107
Rs 2,710
Rs 2,701
Rs 2,000
If selling price is less than the book value of the asset it denotes
Loss
Capital profit
Expenditure
Under straight line method, rate of depreciation is calculated on
Original cost
Written down value
Cost less scrap value
Revaluation
The term depletion is used for
Intangible assets
Fixed assets
Natural resources
Current assets