The depreciation during the year 'n', in diminishing balance method of depreciation calculation, is calculated by multiplying a fixed percentage 'N' to the (A) Initial cost (B) Book value at the end of (n - 1)th year (C) Depreciation during the (n - 1)th year (D) Difference between initial cost and salvage value

The depreciation during the year 'n', in diminishing balance method of depreciation calculation, is calculated by multiplying a fixed percentage 'N' to the
(A) Initial cost
(B) Book value at the end of (n - 1)th year
(C) Depreciation during the (n - 1)th year
(D) Difference between initial cost and salvage value
by

1 Answer

Answer :

(B) Book value at the end of (n - 1)th year
by

Related questions

In declining balance method of depreciation calculation, the (A) Value of the asset decreases linearly with time (B) Annual cost of depreciation is same every year (C) Annual depreciation is the fixed percentage of the property value at the beginning of the particular year (D) None of these

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Last Answer : (C) Annual depreciation is the fixed percentage of the property value at the beginning of the particular year

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Last Answer : A) Diminishing balance

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Last Answer : (A) Diminishing balance

A machine has an initial value of Rs. 5000, service life of 5 years and final salvage value of Rs. 1000. The annual depreciation cost by straight line method is Rs. (A) 300 (B) 600 (C) 800 (D) 1000

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Last Answer : (C) 800

An annuity is a series of equal payments occuring at equal time intervals, and this amount includes the sum of all payments plus interest, if allowed to accumulate at a definite rate of interest from the time of initial payment to the end of annuity term. Ordinary annuity is used in the calculation of the (A) Manufacturing cost (B) Depreciation by sinking fund method (C) Discrete compound interest (D) Cash ratio

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Last Answer : (B) Depreciation by sinking fund method

The original cost of an equipment is Rs.10,000. Its salvage value at the end of its total useful life of five years is Rs. 1,000. Its book value at the end of two years of its useful life (as per straight line method of evaluation of depreciation) will be (A) Rs. 8,800 (B) Rs. 7,600 (C) Rs. 6,400 (D) Rs. 5,000

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A reactor having a salvage value of Rs. 10000 is estimated to have a service life of 10 years. The annual interest rate is 10%. The original cost of the reactor was Rs. 80000. The book value of the reactor after 5 years using sinking fund depreciation method will be Rs. (A) 40,096 (B) 43,196 (C) 53,196 (D) 60,196

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Last Answer : D) 60,196

A machine is purchased for Rs. 10,000,00 and has an estimated life of 10 years. The salvage value at the end of 10 years is Rs. 1,50,000. The book value of the machine at the end of 5 years using general straight line method of evaluation of depreciation is (A) Rs. 4,75,000 (B) Rs. 5,75,000 (C) Rs. 6,50,000 (D) Rs. 8,50,000

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Last Answer : (B) Rs. 5,75,000

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Last Answer : D) [2 (n - m + 1)/n(n + 1)]. (P - S)

Which of the following is least likely to be part of the calculation of the terminal- year incremental net cash flow for an energy-related expansion project? A. An initial working capital investment is now returned as an additional cash inflow B. Disposal/reclamation costs C. Capitalized expenditures D. Salvage value of any sold or disposed assets

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Annual depreciation cost are not constant when, the __________ method of depreciation calculation is used. (A) Straight line (B) Sinking fund (C) Present worth (D) Declining balance

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An excavator costs Rs. 20,00,000 and has an estimated life of 8 years. It has no salvage value at the end of 8 years. The book value of the excavator at the end of 3 years using general double declining balance method is (A) Rs. 8,43,750 (B) Rs. 8,75,000 (C) Rs. 10,50,000 (D) Rs. 11,56,250

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A Firm is considering undertaking a project that would yield annual profits (after depreciation) of Rs 68,000 for 5 years. The initial outlay of the project would be Rs 800,000 and the project's assets would have a residual value of Rs 50,000 at the end of the project. What would be the accounting rate of return for this project? A 16% B 8.5% C 8.0% D 9.1%

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Annual depreciation as per straight line method, is calculated by?

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Name the German theoretical physicist who was awarded the Nobel prize for his principle of radiation which states that radiant energy is composed of tiny bits of energy called quanta, the magnitude of which can be calculated by multiplying the frequency of the radiation times a universal constant?

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Ashwin purchased a second hand machine for Rs.1 lakh. Over the first year after its purchase. He incurred an expense of Rs.20000 in maintaining it. At the end of the first year he sold it for Rs.80000. Find his profit/loss percentage. If 25% of the total cost price (i.e., purchased price + expenses) is to be deducted on account of depreciation. a)12.5% profit b)12.5% loss c)11 1/9% profit d)11 1/9% loss

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A company has to choose between two projects whose cash flows are as indicated below; Project 1: i. Investment – Rs. 15 Lakhs ii. Annual cost savings – Rs. 4 lakhs. iii. Bi-annual maintenance cost – Rs. 50,000/- iv. Reconditioning and overhaul during 5th year: 6 lakhs v. Life of the project – 8 years vi. Salvage value – Rs. 5 lakhs Project 2: vii. Investment – Rs. 14 Lakhs viii. Annual cost savings – Rs. 3.5 lakhs. ix. Annual Maintenance cost – Rs. 20,000/- x. Reconditioning and overhaul during 4th year: 5 lakhs xi. Life of the project – 8 years xii. Salvage Value- 2 lakhs Which project should the company choose? The annual discount rate is 12

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What is the Reducing Balance Method of charging depreciation?

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An earth moving equipment costs Rs. 5,00,000 and has an estimated life of 10 years and a salvage value of Rs. 50,000. What uniform annual amount must be set aside at the end of each of the 10 years for replacement if the interest rate is 8% per annum and if the sinking fund factor at 8% per annum interest rate for 10 years is 0.069? (A) Rs. 31050 (B) Rs. 34500 (C) Rs. 37950 (D) Rs. 5000

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Last Answer : (A) Rs. 31050

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