Description : Give equation for calculating depreciation under reducing balance method.
Last Answer : Dep per annum= (NBV- Salvage)*rate;
Description : What is the Reducing Balance Method of charging depreciation?
Last Answer : What is the Reducing Balance Method of charging depreciation?
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 : 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 : 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 : 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 : 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 : 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 ... method will be Rs. (A) 40,096 (B) 43,196 (C) 53,196 (D) 60,196
Last Answer : D) 60,196
Description : 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 ... be (A) Rs. 8,800 (B) Rs. 7,600 (C) Rs. 6,400 (D) Rs. 5,000
Last Answer : (C) Rs. 6,400
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 : ________ of depreciation calculation accounts for the interest on investment. (A) Straight line method (B) Declining balance (C) Both (A) and (B) (D) Neither (A) nor (B)
Last Answer : D) Neither (A) nor (B)
Description : Which of the following methods of depreciation calculations results in book values greater than those obtained with straight line method? (A) Multiple straight line method (B) Sinking fund method (C) Declining balance method (D) Sum of the years digit method
Last Answer : (B) Sinking fund method
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 : Depreciation is always charged on __________ assets.
Last Answer : Depreciation is always charged on __________ assets. (a) Current (b) Fixed (c) Fictitious (d) Intangible
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 : Why is depreciation charged by business, which makes losses?
Last Answer : If I hide Depreciation for showing higher profits even if organization is in loss, I may end up paying Tax too. Which will in fact reduce my margin for profit. It will be better to show depreciation and claim tax benefit.
Description : Why depreciation is charged to an asset?
Last Answer : As per Accounting Standards, it is a good practice to show the capital expense every period i.e. period wise. Thus, profits will be evenly shared in each period.
Description : What is the rate of depreciation charged on Computer Software: a) 10% b) 60% c) 40% d) 15%
Last Answer : b) 60%
Description : At the balance sheet date, the balance on the Accumulated Provision for Depreciation Account is A) Transferred to Depreciation Account B) Transferred to the Asset Account C) Transferred to Profit and Loss Account D) Simply deducted from the asset in the Balance Sheet
Last Answer : Answer: D
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 : 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 : 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 straight-line method.
Last Answer : Dep per annum= cost-salvage/useful life;
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 : (i) Fixed Installment Method of depreciation is also known as _________ cost method.
Last Answer : Complete the following sentence : (i) Fixed Installment Method of depreciation is also known as ... year. (v) Depreciation is ________ expenses.
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 : 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
Last Answer : (C) 800
Description : Mark the correct option a) No subsequent deposit allowed less than Rs 5 in saving account b) No withdrawal is allowed less than Rs 5 c) No withdrawal shall be permitted which has the effect reducing the ... to less than fifty in single account and less than 500 in cheque account d) All the above
Last Answer : d) All the above
Description : All direct & indirect expenses related to business are charged: a)Profit and loss account b)Trading account c)Trading account Profit and Loss account d)Directly to Balance sheet
Last Answer : c)Trading account Profit and Loss account
Description : The charges of placing commodities into a saleable condition should be charged to A) Trading account B) P & L a/c C) Balance Sheet D) None of the above
Last Answer : Answer: A
Description : which method almost always produces the most depreciation in the first year? -General Knowledge
Last Answer : B. Double-declining-balance.
Description : why Novelty Chemicals bought a Motor Vehicle for$110,000 on January 5, 2016. The estimated usefullife of the vehicle is ten years. The disposal valueis estimated at $10,000. Annual depreciation is onthe straight line method?
Last Answer : Novelty Chemicals bought a Motor Vehicle for$110,000 on January 5, 2016. The estimated usefullife of the vehicle is ten years. The disposal valueis estimated at $10,000. Annual ... for annualdepreciation.d) The Balance Sheet extracts for motor vehicle and itsrelated depreciation.full question
Description : Which method of depreciation would you suggest for depreciating a five years lease?
Last Answer : Which method of depreciation would you suggest for depreciating a five years lease?
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
Last Answer : Answer: Mines, Quarries, etc.
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 : All of the following influence capital budgeting cash flows except . A. choice of depreciation method for tax purposes B. economic length of the project C. projected sales (revenues) for the project
Last Answer : B. economic length of the project
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 : 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 : '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 : Depreciation (A) Costs (on annual basis) are constant when the straight line method is used for its determination (B) Is the unavoidable loss in the value of the plant, equipment and materials with lapse in time ... income tax liability on cash flows from an investment (D) All (A), (B) and (C)
Last Answer : (D) All (A), (B) and (C)
Description : 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 ... Rs. 4,75,000 (B) Rs. 5,75,000 (C) Rs. 6,50,000 (D) Rs. 8,50,000
Last Answer : (B) Rs. 5,75,000
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.
Last Answer : Annual depreciation as per straight line method, is calculated by the capital cost minus the salvage value, is divided by the number of years of life.
Description : My phone's charger is broken. Readymade is not charged with the charger but is charged with another phone's original charger. What is the problem ?
Last Answer : Answer : Getting ready-made charger is often more or less the problem. Many times charging with a ready-made charger can cause the phone to overheat , which can be very detrimental to the phone. If possible, charge your phone with the original charger.
Description : 1. What is Electric field intensity at a point a hollow charged spherical conductor? 2. How many member country were founder of the Southern African Development Community? 3. In which year Swarn ... ? 20. What was the earliest public association formed in the history of modern India in 1837?
Last Answer : Answer : 1. Is zero 2. 8 3. April 1999 4. Dykes 5. Ramtanu Pande 6. Inoculation against cholera 7. President 8. Silver Iodide (Agl) 9. Bolivia 10. Third Battle of Panipat 11. ... . Indirectly 17. First decreases then increases 18. Central Statistical Organisation 19. 12 20. The Landholder's Society