Which of these is an example of depreciation?

Which of these is an example of depreciation?
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A worker’s truck breaks down more often after 80,000 miles of driving.
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Depreciation need not be provided if the asset is not in use.

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Depreciation is always charged on __________ assets. 

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(i) Fixed Installment Method of depreciation is also known as _________ cost method.

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(i) ___________ is the major cause for Depreciation.

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Under the Reducing Balance, method depreciation is charged on the original cost.

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There is no need to provide depreciation if the asset is maintained with care.

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(i) The method of charging depreciation under which depreciation is calculated on the original cost of an asset.

Description : (i) The method of charging depreciation under which depreciation is calculated on the original cost of an asset.

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Under which method of depreciation does the number of depreciation change every year?

Description : Under which method of depreciation does the number of depreciation change every year?

Last Answer : Under which method of depreciation does the number of depreciation change every year?

Under which method of depreciation the amount of depreciation remains constant every year?

Description : Under which method of depreciation the amount of depreciation remains constant every year?

Last Answer : Under which method of depreciation the amount of depreciation remains constant every year?

Depreciation = cost of Asset (-)........./Estimatedlif of Asset

Description : Depreciation = cost of Asset (-)........./Estimatedlif of Asset

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Under the __________ system of depreciation, the amount of depreciation does not change from year to year. 

Description : Under the __________ system of depreciation, the amount of depreciation does not change from year to year. 

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Under ____________ method depreciation is calculated on written down value.

Description : Under ____________ method depreciation is calculated on written down value.

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In fixed instalment system the amount of depreciation is ____________ every year. 

Description : In fixed instalment system the amount of depreciation is ____________ every year. 

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By the amount of depreciation the value of asset __________ 

Description : By the amount of depreciation the value of asset __________ 

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Depreciation arises because of _________ 

Description : Depreciation arises because of _________ 

Last Answer : Depreciation arises because of _________ (a) wear and tear (b) inflation (c) loss in business (d) profit in business

What is the Reducing Balance Method of charging depreciation?

Description : What is the Reducing Balance Method of charging depreciation?

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(i) Which accounting standard is followed for depreciation on fixed assets __________

Description : (i) Which accounting standard is followed for depreciation on fixed assets __________

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Calculate Depreciation :

Description : Calculate Depreciation :

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What is the depreciation rate for a RETAIL MANNEQUIN?

Description : What is the depreciation rate for a RETAIL MANNEQUIN?

Last Answer : Feel Free to Answer

How does asset depreciation affect my tax burden?

Description : How does asset depreciation affect my tax burden?

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Are there any good depreciation calculators online?

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What is "actual depreciation" ?

Description : What is "actual depreciation" ?

Last Answer : The depreciation that has occurred as a result of physical, functional or economic affects and have caused a loss in the value of a building.

Rent, interest on fixed capital, depreciation of building, taxes and wages of the permanent labourers constitute

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The loss on the sale of old furniture is debited to– (A) profit & loss account (B) furniture account (C) trading account (D) depreciation account

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A limited company makes a net profit of Rs. 2,00,000 after writing off preliminary expenses amounting to Rs. 20,000 and providing for depreciation on assets amounting to Rs. 40,000 and gain of Rs. 10,000 on sale of a piece of machinery. What are the funds from operation ? (A) Rs. 2,00,000 (B) Rs. 2,40,000 (C) Rs. 2,50,000 (D) Rs. 2,60,000

Description : A limited company makes a net profit of Rs. 2,00,000 after writing off preliminary expenses amounting to Rs. 20,000 and providing for depreciation on assets amounting to Rs. 40,000 and gain of Rs. 10,000 on sale of a piece of ... 2,00,000 (B) Rs. 2,40,000 (C) Rs. 2,50,000 (D) Rs. 2,60,000

Last Answer : Answer: Rs. 2,50,000

The following data, relates to manufacturing company for the year 2006-07– Net Profit as per P & L A/c–Rs. 2,40,000; Depreciation–Rs. 80,000; Goodwill written-off– Rs. 40,000, Profit on Sale of Fixed Assets–Rs. 16,000, Proposed Dividend–Rs. 96,000. The fund from operation would be– (A) Rs. 4,40,000 (B) Rs. 4,00,000 (C) Rs. 6,40,000 (D) None of the above

Description : The following data, relates to manufacturing company for the year 2006-07- Net Profit as per P & L A/c-Rs. 2,40,000; Depreciation-Rs. 80,000; Goodwill written-off- Rs. 40,000, Profit on Sale of Fixed Assets-Rs. 16,000, ... ) Rs. 4,40,000 (B) Rs. 4,00,000 (C) Rs. 6,40,000 (D) None of the above

Last Answer : Answer: None of the above

From the information given below, calculate Debt service coverage Ratio– Net profit after interest and Tax Rs. 40,000, Depreciation Rs. 5,000, Rate of Income Tax 50%, 10% Mortgage Debentures Rs. 60,000. Fixed Interest Charges Rs. 6,000, Debenture Redemption Fund Appropriation of Outstanding Debentures 10%. (A) 4•06 times (B) 5•06 times (C) 6•06 times (D) 7•06 times

Description : From the information given below, calculate Debt service coverage Ratio- Net profit after interest and Tax Rs. 40,000, Depreciation Rs. 5,000, Rate of Income Tax 50%, 10% Mortgage Debentures Rs. 60,000. Fixed Interest Charges Rs. 6 ... . (A) 4 06 times (B) 5 06 times (C) 6 06 times (D) 7 06 times

Last Answer : Answer: 4•06 times

Depletion method of depreciation is used in case of– (A) Cattle, Loose Tools, etc. (B) Mines, Quarries, etc. (C) Machinery, Building, etc. (D) Books

Description : Depletion method of depreciation is used in case of– (A) Cattle, Loose Tools, etc. (B) Mines, Quarries, etc. (C) Machinery, Building, etc. (D) Books

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The difference between the GNP and the NNP is equal to the - (1) consumer expenditure on durable goods (2) direct tax revenue (3) indirect tax revenue (4) capital depreciation

Description : The difference between the GNP and the NNP is equal to the - (1) consumer expenditure on durable goods (2) direct tax revenue (3) indirect tax revenue (4) capital depreciation

Last Answer : (4) capital depreciation Explanation: Depreciation refers to two very different but related concepts: the decrease in value of assets (fair value depreciation), and the allocation of the cost of ... equal to capital depreciation. It is the wearing out, breaking down, or technological obsolescence.

Net National Product in National Income Accounting refers to - (1) Gross Domestic Product—Depreciation (2) Gross Domestic Product + Subsidies (3) Gross National Product—Depreciation (4) Gross National Product + Subsidies

Description : Net National Product in National Income Accounting refers to - (1) Gross Domestic Product—Depreciation (2) Gross Domestic Product + Subsidies (3) Gross National Product—Depreciation (4) Gross National Product + Subsidies

Last Answer : (3) Gross National Product-Depreciation Explanation: Net national product at market price is the market value of the output of final goods and services produced at current price in one year of ... the depreciation charges from the gross national product, we get net national product at market price.

Depreciation is loss in value of _______. (1) Final goods (2) Machinery (3) Capital stock (4) Stock of inventory

Description : Depreciation is loss in value of _______. (1) Final goods (2) Machinery (3) Capital stock (4) Stock of inventory

Last Answer : (2) Machinery Explanation: The term depreciation represents loss or diminution in the value of an asset consequent upon wear and tear, obsolescence, effluxion of time or permanent fall in market value ... furniture, vehicles, plant etc. The wear and tear is general but primary cause of depreciation.

Gross National Product - Depreciation Allowance =? (1) Per Capita Income (2) Gross Domestic Product (3) Personal Income (4) Net National Product

Description : Gross National Product - Depreciation Allowance =? (1) Per Capita Income (2) Gross Domestic Product (3) Personal Income (4) Net National Product

Last Answer : (4) Net National Product Explanation: Net National product (NNP) is Gross National Product minus a depreciation allowance for the wearing out of machines and buildings during the period. In other words, NNP= ... Since NNP counts only the net additions to the nation's stock, it is less than GNP.

Capital : Output Ratio of a measures - (1) its per unit cost of production (2) the amount of capital invested per unit of output (3) the ratio of capital depreciation to quantity of output (4) the ratio of working capital employed to quantity of output

Description : Capital : Output Ratio of a measures - (1) its per unit cost of production (2) the amount of capital invested per unit of output (3) the ratio of capital depreciation to quantity of output (4) the ratio of working capital employed to quantity of output

Last Answer : (2) the amount of capital invested per unit of output Explanation: Capital output ratio is the ratio of capital used to produce an output over a period of time. This ratio has a tendency to be ... its resources in lieu of capital to boost its output; hence the resulting capital output ratio is low.

Capital output ratio of a commodity measures - (1) its per unit cost of production (2) the amount of capital invested per unit of output (3) the ratio of capital depreciation to quantity of output (4) the ratio of working capital employed to quantity of output

Description : Capital output ratio of a commodity measures - (1) its per unit cost of production (2) the amount of capital invested per unit of output (3) the ratio of capital depreciation to quantity of output (4) the ratio of working capital employed to quantity of output

Last Answer : (2) the amount of capital invested per unit of output Explanation: Capital Output Ratio is the ratio of capital used to produce an output over a period of time. This ratio has a tendency ... order to increase the output. When countries use their natural resources instead of capital then COR reduces.

When there is an official change in the exchange rate of domestic currency, then it is called (1) Appreciation (2) Depreciation (3) Revaluation (4) Deflation

Description : When there is an official change in the exchange rate of domestic currency, then it is called (1) Appreciation (2) Depreciation (3) Revaluation (4) Deflation

Last Answer : (2) Depreciation Explanation: Revaluation is a calculated adjustment to a country's official exchange rate relative to a chosen baseline. The baseline can be anything from wage rates to the price of gold ... . central bank) can alter the official value of the currency. It is opposite of devaluation.

Value-added means value of - (1) output at factor cost (2) output at market prices (3) goods and services less depreciation (4) goods and services less cost of intermediate goods and services

Description : Value-added means value of - (1) output at factor cost (2) output at market prices (3) goods and services less depreciation (4) goods and services less cost of intermediate goods and services

Last Answer : (4) goods and services less cost of intermediate goods and services Explanation: Value added is an economic term to express the difference between the value of goods and the cost of materials or ... services by others. So it is of goods and services less cost of intermediate goods and services.

Net National Product of a country is - (1) GDP minus depreciation allowances (2) GDP plus net income from abroad (3) GNP minus net income from abroad (4) GNP minus depreciation allowances

Description : Net National Product of a country is - (1) GDP minus depreciation allowances (2) GDP plus net income from abroad (3) GNP minus net income from abroad (4) GNP minus depreciation allowances

Last Answer : (4) GNP minus depreciation allowances Explanation: Net national product (NNP) is the total market value of all final goods and services produced by residents in a country or other polity during a given ... and NDP is equal to gross domestic product (GDP) minus depreciation: NDP = GDP - depreciation.

Depreciation is equal to — (1) Gross national product —Net national product (2) Net national product —Gross national product (3) Gross national product —Personal income (4) Personal income — Personal taxes

Description : Depreciation is equal to — (1) Gross national product —Net national product (2) Net national product —Gross national product (3) Gross national product —Personal income (4) Personal income — Personal taxes

Last Answer : (1) Gross national product -Net national product Explanation: Net national product at market price is the market value of the output of final goods and services produced at current price in ... we get net national product at market price. So depreciation = Gross National ProductNet National Product,

The difference between GNP and NNP equals - (1) corporate profits (2) personal taxes (3) transfer payments (4) depreciation

Description : The difference between GNP and NNP equals - (1) corporate profits (2) personal taxes (3) transfer payments (4) depreciation

Last Answer : (4) depreciation Explanation: Gross National Product [GNP) is the gross value of all the final products without deducting the depreciation of fixed capital. Net National Product (NNP) is the value of ... a period of one year. The difference between the GNP and NNP is equal to Capital depreciation.

Which of the following is deducted from GNP to arrive at NNP? (1) Depreciation (2) Interest (3) Tax (4) Subsidy

Description : Which of the following is deducted from GNP to arrive at NNP? (1) Depreciation (2) Interest (3) Tax (4) Subsidy

Last Answer : (1) Depreciation Explanation: If we subtract the depreciation charges from the gross national product, we get net national product at market price. Net national product at market price=Gross national product at market priceDepreciation.

What are the methods for determining depreciation charges?

Description : What are the methods for determining depreciation charges?

Last Answer : The decrease in the value of the power plant equipment and building due to constant use is known as depreciation. The cost of depreciation will depend on the size and type of equipment ... equals the cost of equipment. The methods commonly used for determination of annual depreciation charges are

Explain the term depreciation.

Description : Explain the term depreciation.

Last Answer : The decrease in the value of the power plant equipment and building due to constant use is known as depreciation. In practice, every power station has a useful life ranging from fifteen to thirty years ... of the plant. This reduction in the value of plant every year is known as annual depreciation.

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%

Description : 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 ... accounting rate of return for this project?  A 16%  B 8.5%  C 8.0%  D 9.1%

Last Answer : A 16%

Cash inflows from a project include: A. tax shield of depreciation B. after tax operating profits C. raising of funds D. Both (a) and (b)

Description : Cash inflows from a project include: A. tax shield of depreciation B. after tax operating profits C. raising of funds D. Both (a) and (b)

Last Answer : D. Both (a) and (b)

Which of the following does not affect cash flows from a proposal: A. Salvage value B. Depreciation amount C. Tax rate change D. Method of project financing

Description : Which of the following does not affect cash flows from a proposal: A. Salvage value B. Depreciation amount C. Tax rate change D. Method of project financing

Last Answer : D. Method of project financing