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Question-1
Under which method of depreciation, the amount of depreciation goes on decreasing year by year?
(A)
Diminishing balance method
(B)
Annuity method
(C)
Revaluation method
(D)
Fixed installment method
Question-2
Which method is useful for assets of lesser value such as furniture, patents etc?
(A)
Fixed installment method
(B)
Annuity method
(C)
Diminishing method
(D)
Depletion method
Question-3
Under which depreciation method, the amount of depreciation expenses remains same throughout the useful life of a fixed asset?
(A)
Straight line method
(B)
Reducing balance method
(C)
Number of units produced method
(D)
Machine hours method
Question-4
Documentary evidence, in a specific format used to record the details of a transaction is known as:
(A)
Account
(B)
Voucher
(C)
Journal
(D)
Ledger
Question-5
The charge of depreciation to profit and loss account is equal in respect of an asset till the end of its useful life. This is the main advantage of:
(A)
Depletion method
(B)
Revaluation method
(C)
Fixed Installment method
(D)
Diminishing balance method
Question-6
Which term is generally used for the depreciation of natural resources?
(A)
Amortization
(B)
Depletion
(C)
Appreciation
(D)
Disposal value
Question-7
General office expenses are charged to which of the following head?
(A)
Administrative expenses
(B)
Marketing expenses
(C)
Selling expenses
(D)
Financial expenses
Question-8
Which of the following fixed assets is NOT depreciated in the ordinary circumstances?
(A)
Plant and machinery
(B)
Building
(C)
Land
(D)
Equipments
Question-9
Interest charges on the amount spent on an asset is not considered on calculating depreciation.This is the disadvantage of:
(A)
Diminishing Balance Method
(B)
Annuity Method
(C)
Straight line Method
(D)
Depreciation Fund Method
Question-10
A financial statement that indicates the success or failure of a business, over a period of time is called:
(A)
A cash flow statement
(B)
A retained earnings statement
(C)
An income statement
(D)
A balance sheet
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Cambridge Advanced Grade 12
IGCSE
Practice in Related Chapters
Depreciation and Disposal of Fixed Asset
Bad Debts and Provision for Doubtful Debts
Control Accounts
Petty Cash Books
Incomplete Records
Accounts of Clubs and Societies
Partnership Accounts -PART A
Books of Prime Entry
Accounts of Manufacturing Business
Introduction to Accounting
Double Entry Book Keeping
The Trail Balance
Final Accounts
Accruals and prepayments
Accounting Rules
Bank Reconciliation Statement
Business Documents
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