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

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