Under diminishing balance method, depreciation
Decreases every year
Increases every year
Constant every year
Increasing and Decreasing every year
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
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
Under straight line method, rate of depreciation is calculated on
Original cost
Written down value
Cost less scrap value
Revaluation
______ method of depreciation is suitable for special type of assets like Loose tools.
Annuity
Premium
The estimated sale value of the asset at the end of it's economic life is called
Book value
Residual value
No value
Goodwill
The term depletion is used for
Intangible assets
Fixed assets
Natural resources
Current assets
If selling price is more than the book value of the asset on the date of sale, it is
A loss
An income
A profit
None of these
_____ is the permanent and continuous decrease in the book value of a fixed asset due to use, effusion of time, expiration of legal rights or any other cause.
Depletion
Depreciation
Reduction
The amount of depreciation charged on a machinery will be debited to
Machinery account
Depreciation account
Cash account
Profit and Loss account
