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 : 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 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 : 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 : Depreciation is always charged on __________ assets.
Last Answer : Depreciation is always charged on __________ assets. (a) Current (b) Fixed (c) Fictitious (d) Intangible
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 : (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 : 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 : 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 : 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 : What is the Reducing Balance Method of charging depreciation?
Last Answer : What is the Reducing Balance Method of charging depreciation?
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 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 : ________ 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 : 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 : 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 : 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 : 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 : 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 : 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 : 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 : 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 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 : 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 : 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;
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 : 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 : If the block of asset ceases to exist on the last day of the previous year, depreciation admissible for block of assets will be: a) Nil b) 50% of the value of the block of assets on the first day ... of the previous year d) 50% of the value of the block of assets on last day of the previous year
Last Answer : a) Nil
Description : Is it the case that women almost always make the first move?
Last Answer : But what about when a man notices a woman and the woman doesn’t know he’s under surveillance? :)
Description : Under the __________ system of depreciation, the amount of depreciation does not change from year to year.
Last Answer : Under the __________ system of depreciation, the amount of depreciation does not change from year to year. ... (c) Depletion (d) Machine Hour Rate
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 : 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 : 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.
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 : Depreciation when the asset is used for less than 180 days during the year of acquisition shall be at Block rate of: a) 50% b) 100% c) 20% d) 15%
Last Answer : a) 50%
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