Depreciation MCQs

MCQS 1 To 10

 

1. How do we describe the process of adjusting the value of an asset by recognizing that it is consumed in a way that does not completely eliminate the resource?

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2. If the estimated amount of depreciation on equipment for a period is Rs. 2,000, the adjusting entry to record depreciation would be?

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3. Which one of the following most closely defines 'Amortization'?

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4. Book value = cost minus _____________?

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5. What is process called, where costs of the natural resources are allocated over its useful life?

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6. Depreciation arises due to?

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7. A machine that cost Rs. 120,000 has accumulated depreciation of Rs. 50,000. The book value of machine is?

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8. What is the process of allocating the cost of intangible assets over its estimated life?

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9. Which of the following items is not a non-cash item?

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10. Depreciable value of an asset is equal to?

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>> Read Accounting for Deprecation 

MCQs 11 To 20

 

11. A decrease in value of a fixed asset due to age, wear and tear is known as?

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12. Fixed assets are also called?

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13. Which of the following intangible assets is not amortized?

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14. All of the following are needed for the computation of depreciation except?

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15. The sale of equipment costing Rs. 8,000, with accumulated depreciation of Rs. 6,700 and sale price of Rs. 2,000, would result in a?

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16. Which of the following would not be a basis for estimating the useful life of a piece of equipment?

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17. Firms charge depreciation each year?

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18. Which one of the following items is not a consideration when recording periodic depreciation expense on plant assets?

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19. Loss in value of an asset owing to the physical deterioration or obsolescence is called?

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20. Under the straight line method of depreciation?

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>> Red Accumulated Depreciation

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