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Depreciation Test Questions
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Avg score: 40% • Most missed: “What is the principal objective of Depreciation?”

In accountancy, depreciation is a term that refers to two aspects of the same concept: first, the actual decrease of fair value of an asset, such as the decrease in value of factory equipment each year.
Basically, Depreciation is a process of deducting the cost of an asset over its useful life.

Depreciation Test Questions
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20 Questions

1. What is physical deterioration?
2. What is the reason behind making a provision for depreciation in accounts?
3. The Depreciation remains constant according to which method?
4. What is Scrap Value?
5. What causes Depreciation?
6. Depreciation under Diminishing Balance Method is calculated on?
7. What is the reason behind making a provision for depreciation in accounts?
8. What is Depletion?
9. What is Depreciable Value?
10. What is the principal objective of Depreciation?
11. What is Amortization?
12. What is Depreciable Value?
13. What is Amortization?
14. What is Fixed Instalment Method?
15. Define Depreciation?
16. What is obsolescence?
17. What is the Straight-Line Method?
18. Depreciation on machinery will be debited in which account?
19. What is Scrap Value?
20. What causes Depreciation?

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