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Depreciation Reserves and Provisions (MCQs)
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Depreciation Reserves and Provisions (MCQs)
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22 Questions

1. Under which method the amount of depreciation remains same year after year?
2. The reserve created out of Profit on reissue of forfeited shares is known as______
3. Which of the following statements is NOT true about Provisions?
4. Which of the following statements is NOT true about Reserves?
5. On 30th June 06, half of the machinery purchased on 1st July,03 for Rs. 40,000 was sold for Rs. 9500. The amount of loss will be Rs____The rate of depreciation is 10% p.a. on original cost.
6. Which of the following is the cause of depreciation?
7. What Journal Entry will be passed: Value of asset being sold transferred to Asset Disposal Account?
8. Which method of depreciation suffers from the limitation of unequal burden on profit and loss account?
9. Dividend Equalization Reserveand Debenture Redemption reserveare examples of______
10. Provision is a______against profits to meet______liabilities.
11. The term____is used to show loss in the value of intangible assets.
12. According to Companies Act, creation of secret reserve is prohibited except in case of______
13. According to which Accounting Standard, companies are liable to make provision for depreciation?
14. What will be the amount of loss suffered on machinery purchased for Rs. 10,000 on 1-1-2010 and sold for Rs. 5000 on 30-6-12. The rate of depreciation charged 10% p.a. on written down method.
15. Which method of charging depreciation is accepted by Income Tax Act?
16. If the amount of any known liability cannot be determined with substantial accuracy:
17. Which account will be debited in the Journal entry for transfer of accumulated depreciation on asset disposed off?
18. Any reserve which is not apparent on the face of Balance sheet is known as______
19. Depreciation is which of the following expenditure:
20. Depreciation is a process of:
21. Which of the following factor DOES NOT affect the amount of depreciation?
22. As per the Original Cost method which is the correct formula for calculating Annual depreciation?

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