Chapter 10: Depreciation Accounting March 18, 2024 Maven Leave a Comment Welcome to the Chapter 10: Depreciation Accounting Quiz! This quiz is based on the book back questions. Name Email 1. If the rate of depreciation is same, then the amount of depreciation under straight line method vis-à-vis written down value method will be Equal in all years Equal in the first year but higher in subsequent years Equal in the first year but lower in subsequent years Lower in the first year but equal in subsequent years. None 2. If the total charge of depreciation and maintenance cost are considered, the method that provides a uniform charge is Straight line method Diminishing balance method Annuity method Insurance policy method None 3. Under the written down value method of depreciation, the amount of depreciation is Uniform in all the years Decreasing every year Increasing every year None of the above None 4. Which method shall be efficient, if repairs and maintenance cost of an asset increases as it grows older. Straight line method Reducing balance method Sinking fund method Annuity method None 5. Residual value of an asset means the amount that it can fetch on sale at the ____of its useful life. Beginning End Middle None None 6. For which of the following assets, the depletion method is adopted for writing off cost of the asset? Plant and machinery Mines and quarries Buildings Trademark None 7. Depreciation is to be calculated from the date when Asset is put to use Purchase order is made Asset is received at business premises Invoice of assets is received None 8. Depreciation is caused by Lapse of time Usage Obsolescence a, b and c None 9. A depreciable asset may suffer obsolescence due to____ Passage of time Wear and tear Technological changes None of the above None 10. Under straight line method, the amount of depreciation is Increasing every year Decreasing every year Constant for all the years Fluctuating every year None Time's up Related Posts:Chapter 1: Introduction to AccountingChapter 2: Conceptual Framework of AccountingChapter 14: Computerised AccountingChapter 10: Computerised Accounting system - Tally
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