Which is connected to fixed assets such as wells and mines?
Depletion
Passage of time
Depreciation
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
In the case of capital expenditure , the expense will be treated as:
An profit
An income
Loss
Not an expenses
Final accounts are prepared from:
Balance sheet
Income and expenditure account
Real account
Trial balance
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
The asset account always have:
Credit balance
No balance
Debit balance
Low balance
Estimated loss in the fixed asset over a period of time is:
Loss of fixed asset
Appreciation
Diminishing
The difference between balance of asset and provision for depreciation of asset account will show:
Net book value
Written down value
Residual
Asset is completely written off is the main advantage of:
Fixed instalment method
Diminishing balance method
Net book value method
Depreciation method
The other name of reducing balance method is:
Straight line balance method
Residual method