MCQ Chapter 7 Accountancy Class 11 Maharashtra Board Depreciation 1. What is the meaning of the Latin word ‘Depretium’?ProfitWear and TearLossReductionQuestion 1 of 202. Which of the following assets is not depreciated?FurnitureMachineryLandBuildingQuestion 2 of 203. Depreciation is charged even when the business isMaking profit onlyEarning high incomeIn the start-up phaseSuffering a lossQuestion 3 of 204. Depreciation is considered aCapital ExpenditureReal AccountNominal AccountPersonal AccountQuestion 4 of 205. Which of the following is a cause of depreciation?Increase in capitalTechnological advancementIncrease in demandRise in market priceQuestion 5 of 206. The term ‘Depletion’ is associated withObsolescenceNatural disastersWasting assetsWear and tearQuestion 6 of 207. Which method charges depreciation at a fixed rate on original cost?Reducing Balance MethodRevaluation MethodFixed Instalment MethodMachine Hour Rate MethodQuestion 7 of 208. Depreciation per year under Straight Line Method isIncreasing every yearConstant every yearDecreasing every yearCharged only in the first yearQuestion 8 of 209. In Written Down Value Method, depreciation is charged onOriginal CostMarket ValueScrap ValueOpening Written Down ValueQuestion 9 of 2010. Depreciation is charged toAsset A/cBank A/cCapital A/cProfit and Loss A/cQuestion 10 of 2011. Depreciation is classified as aCash expenditureNon-cash expenditureRevenue incomeCapital receiptQuestion 11 of 2012. Depreciation is essential toIncrease the value of assetShow higher profitsProvide funds for replacementAvoid tax paymentQuestion 12 of 2013. Useful life of an asset refers toMarketable lifeEconomic valuePeriod till resalePeriod it provides serviceQuestion 13 of 2014. Depreciation is calculated by deducting scrap value fromBook valueMarket valueOriginal costSales priceQuestion 14 of 2015. In Straight Line Method, the depreciation curve isUpward slopingDownward slopingParallel to X-axisZigzagQuestion 15 of 2016. The amount spent for installation of asset is treated asRevenue ExpenditureDeferred ExpenditureCapital ExpenditureNominal ExpenditureQuestion 16 of 2017. Which method is recognised by tax authorities in India?Straight Line MethodFixed Instalment MethodDepreciation Fund MethodWritten Down Value MethodQuestion 17 of 2018. Loss on sale of an asset is transferred toAsset AccountCash AccountProfit and Loss AccountCapital AccountQuestion 18 of 2019. When an asset is sold, which account is debited for profit on sale?Profit and Loss A/cAsset A/cProfit on Sale of Asset A/cBank A/cQuestion 19 of 2020. What is the nature of Depreciation Account?Real AccountNominal AccountPersonal AccountCapital AccountQuestion 20 of 20 Loading...
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