Description : In fixed instalment system the amount of depreciation is ____________ every year.
Last Answer : In fixed instalment system the amount of depreciation is ____________ every year. (a) constant (b) fluctuating (c) increased (d) decreased
Description : Depreciation is always charged on __________ assets.
Last Answer : Depreciation is always charged on __________ assets. (a) Current (b) Fixed (c) Fictitious (d) Intangible
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?
Description : Opening WDV off the block of assets was Rs 15 lakh. During the year, asset was acquired under this block on 15 June 2017 amounting to rupees 10 lakh. One of the assets falling within the block was sold for rupees 5.5 ... . rupees 1.95 lakh f. rupees 2.5 lakh g. rupees 2.25 lakh h. Rs 1.45 lakh
Last Answer : e. rupees 1.95 lakh
Description : Opening WDV off the block of assets was Rs 15 lakh. During the year, asset was acquired under this block on 15 January 2018 amounting to rupees 10 lakh. One of the assets falling within the block was sold for rupees 5.5 ... rupees 1.95 lakh b. rupees 2.5 lakh c. rupees 2.25 lakh d. Rs 1.45 lakh
Last Answer : d. Rs 1.45 lakh
Description : Opening WDV of the block of assets was Rs.15 lakh. During the year, asset was acquired under this block on 15th June2017 amounting to Rs. 10 Lakh. Rate of depreciation of the block is 15%. Calculate the amount of depreciation ... 3.5 Lakh b) Rs. 3.75 lakh c) Rs. 3.00 lakh d) Rs.2.25 Lakh
Last Answer : b) Rs. 3.75 lakh
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
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?
Description : Depreciation of machines fails under the indirect expenses head. As per income tax regulations, it is calculated by the __________ method. (A) Diminishing balance (B) Sinking fund (C) Multiple straight line (D) Sum of the years digit
Last Answer : (A) Diminishing balance
Description : The depreciation method which reduces the value of a machine by equal amount each year during the useful life is known as a) Estimated method b) constant percentage method c) compound interest method d) straight line method
Last Answer : d) straight line method
Description : In a small company, paid-up share capital does not exceed ₹ __________ or such higher amount as may be prescribed.
Last Answer : In a small company, paid-up share capital does not exceed ₹ __________ or such higher amount as may be prescribed. ... (b) ₹ 20 lakh (c) ₹ 50 lakh
Description : By the amount of depreciation the value of asset __________
Last Answer : By the amount of depreciation the value of asset __________ (a) decreases (b) increases (c) becomes zero (d) remains constant
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.
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.
Description : 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 ... cost (B) Depreciation by sinking fund method (C) Discrete compound interest (D) Cash ratio
Last Answer : (B) Depreciation by sinking fund method
Description : If the asset is revalued then depreciation u/s 98 shall be allowed on a) Original amount b) Revalued Amount c) At fair value of similar asset d) Market Value-Notional Depreciation
Last Answer : a) Original amount
Description : R, an assessee carries on business in respect of which it holds tenancy rights. It carries out improvements to the said building at a cost of Rs. 2 lakhs and claims depreciation @ 10% thereon. Which one of ... Deduction will be allowed of Rs. 2 Lakh d) The amount of Rs.2.2 lakh will be capitalized
Last Answer : b) Depreciation will be allowed of Rs.20 thousand
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 : the amount of capital invested per unit of output
Description : A statement of __________ is to be prepared in under to find out profit or loss under a single entry system.
Last Answer : A statement of __________ is to be prepared in under to find out profit or loss under a single entry system ... (c) Revenue (d) Profit or Loss
Description : Under a floating exchange rate system, an increase in U.S. imports of Japanese goods will cause the demand schedule for Japanese yen to: A. Increase, inducing a depreciation in the yen B. ... C. Increase, inducing an appreciation in the yen D. Decrease, inducing an appreciation in the yen
Last Answer : C. Increase, inducing an appreciation in the yen
Description : (i) Which accounting standard is followed for depreciation on fixed assets __________
Last Answer : Complete the following sentence : (i) Which accounting standard is followed for depreciation on fixed ... for a period of less than one year ______
Description : The value of a property decreases __________ with time in straight line method of determining depreciation. (A) Linearly (B) Non-linearly (C) Exponentially (D) Logarithmically
Last Answer : A) Linearly
Description : __________ of depreciation calculation does not take into account the interest on investments. (A) Present worth method (B) Sinking fund method (C) Sum of the years-digits method (D) All (A), (B) and (C)
Last Answer : (C) Sum of the years-digits method
Description : Total product cost of a chemical plant does not include the __________ cost. (A) Market survey (B) Operating labour, supervision and supplies (C) Overhead and utilities (D) Depreciation, property tax and insurance
Last Answer : (A) Market survey
Description : 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
Last Answer : (D) Declining balance
Description : Out of the following, the depreciation calculated by the __________ method is the maximum. (A) Diminishing balance (B) Straight line (C) Sum of the years digit (D) Sinking fund
Last Answer : A) Diminishing balance
Description : Under the Reducing Balance, method depreciation is charged on the original cost.
Last Answer : State whether the following statement are True or False with reason : Under the Reducing ... method depreciation is charged on the original cost.
Description : (i) The method of charging depreciation under which depreciation is calculated on the original cost of an asset.
Last Answer : Write the word/term/phrase which can substitute each of the following statements: (i) The method ... , etc. incurred for the erection of machinery.
Description : Under ____________ method depreciation is calculated on written down value.
Last Answer : Under ____________ method depreciation is calculated on written down value. (a) Fixed Instalment (b) ... Balance (c) Revaluation (d) Depletion
Description : Give equation for calculating depreciation under reducing balance method.
Last Answer : Dep per annum= (NBV- Salvage)*rate;
Description : Give equation for calculating depreciation under straight-line method.
Last Answer : Dep per annum= cost-salvage/useful life;
Description : Under the Income Tax Act 1961, Depreciation on machinery is charged on : a) Purchase Price of the machinery b) Market Price of the Machine c) Written Down value d) A or B which is less
Last Answer : c) Written Down value
Description : Depreciation under ICDS-V shall be charged in accordance with : a) Income Tax Act 1961 b) Companies Act 2013 c) Notified Rate –CBEC d) Straight line over the useful life
Last Answer : a) Income Tax Act 1961
Description : ______________ is granted to small scale units under section 33B of the Income tax act, 1961. A. Depreciation Allowance. B. Development Debate. C. Investment Allowance. D. Rehabilitation Allowance.
Last Answer : D. Rehabilitation Allowance.
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.
Description : Give journal entry for adjusting profit made due to change in method of depreciation.
Last Answer : It can only be achieved by reducing rate of Dep retrospectively.
Description : What is retrospective change in depreciation method?
Last Answer : It means change in accounting policy such that it was present from starting.
Description : What is prospective change in depreciation method?
Last Answer : Prospective Change means the effect of accounting estimate and new policy is from current date and in future entry.
Description : Depreciation is sometimes treated as -------of funds a) Outflow b) Use c) Source d) No change
Last Answer : c) Source
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 : Revaluation
Description : which method almost always produces the most depreciation in the first year? -General Knowledge
Last Answer : B. Double-declining-balance.
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
Description : Which of the following is most likely to require special planning considerations related to asset valuation? a. Accelerated depreciation methods are used for amortizing the costs of factory equipment. b. ... even when the expected life exceeds one year. d. Inventory is comprised of diamond rings.
Last Answer : Inventory is comprised of diamond rings.
Description : 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 ... ) Depreciation during the (n - 1)th year (D) Difference between initial cost and salvage value
Last Answer : (B) Book value at the end of (n - 1)th year
Description : 'P' is the investment made on an equipment, 'S' is its salvage value and 'n is the life of the equipment in years. The depreciation for Rath year by the sum-of year’s digit method will be (A) (P - S)/n (B) 1 - (P/S)1/m (C) (m/n) (P - S) (D) [2 (n - m + 1)/n(n + 1)]. (P - S)
Last Answer : D) [2 (n - m + 1)/n(n + 1)]. (P - S)
Description : 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
Last Answer : (C) Annual depreciation is the fixed percentage of the property value at the beginning of the particular year
Description : 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 ... account of depreciation. a)12.5% profit b)12.5% loss c)11 1/9% profit d)11 1/9% loss
Last Answer : d)11 1/9% loss
Description : Is depreciation charged to reduce profits or to reduce the value of asset during a financial year?
Last Answer : It is charged to reduce value of asset.
Description : Why is depreciation charged even in the year of loss?
Last Answer : Depreciation process does not depend on Profit/Loss, it is mandatory to charge depreciation as expense on Asset is distributed
Description : Depreciation is calculated: a. using a 3-year MACRS. b. using a 5-year MACRS. c. over a straight line 5-year period. d. over a straight line 10-year period. e. over a straight line 15-year period.
Last Answer : e. over a straight line 15-year period.