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 amount of depreciation charged on a machinery will be debited to
Machinery account
Depreciation account
Cash account
Profit and Loss account
Depreciation arises due to
Wear and tear of the assets
Fall in the market value of asset
Fall in the value of money
None of these
Obsolescence and inadequacy are called the ____ factors causing depreciation.
Social
Natural
Economic
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
Under straight line method, rate of depreciation is calculated on
Original cost
Written down value
Cost less scrap value
Revaluation
All assets whose benefit is derived for a long period of time, usually more than one year are called as
Intangible assets
Fixed assets
Natural Resources
Tangible assets
_____ method of depreciation is calculated on the original cost of assets.
Straight line
Annuity
Premium
Depreciation is a process of
Valuation
Allocation
Both valuation and allocation
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