MCQ Chapter 7 Accountancy Class 11 Maharashtra Board Depreciation 1. What is the formula for calculating depreciation under Straight Line Method?Cost of Asset × Rate of DepreciationScrap Value ÷ Estimated LifeCost of Asset – Scrap Value ÷ Estimated LifeMarket Value × Rate of DepreciationQuestion 1 of 202. Under WDV method, depreciation is calculated onClosing balanceResidual valueScrap valueOpening book valueQuestion 2 of 203. When a machine is sold, which account is debited to record the sale price?Asset A/cDepreciation A/cBank A/cProfit and Loss A/cQuestion 3 of 204. Depreciation due to affluxion of time occurs even if the asset isUsed every dayNot in useObsoleteSoldQuestion 4 of 205. Natural calamities cause depreciation byIncreasing profitsReducing market demandDamaging the assetsImproving life of assetQuestion 5 of 206. Obsolescence refers to reduction in value due toPhysical damageWear and tearMarket fluctuationsTechnological changesQuestion 6 of 207. Which of the following is NOT a method of depreciation mentioned in the syllabus?Written Down Value MethodAnnuity MethodFixed Instalment MethodDepreciation Fund MethodQuestion 7 of 208. Under Straight Line Method, book value of asset can becomeNegativeConstantZeroMarket ValueQuestion 8 of 209. Depreciation is charged in the books by which journal entry?Asset A/c Dr.To Depreciation A/cDepreciation A/c Dr.To Asset A/cBank A/c Dr.To Asset A/cDepreciation A/c Dr.To Capital A/cQuestion 9 of 2010. The estimated value of an asset at the end of its life is known asMarket valueScrap valueCost valueBook valueQuestion 10 of 2011. The cost of an asset includesOnly purchase priceInterest paidPurchase price and incidental chargesOnly installation chargesQuestion 11 of 2012. Written Down Value method is suitable whenRepairs are constantAsset has long lifeRepairs increase in later yearsAsset is not depreciableQuestion 12 of 2013. In Straight Line Method, which of the following remains constant?Book valueRate of depreciationAmount of depreciationUseful lifeQuestion 13 of 2014. The balance in the depreciation account is transferred toAsset A/cCapital A/cProfit and Loss A/cReserve A/cQuestion 14 of 2015. Which curve best represents WDV method of depreciation on a graph?Horizontal lineUpward curveDownward sloping curveVertical lineQuestion 15 of 2016. Depreciation helps inEarning more profitReducing tax liabilitiesCharging extra on assetsSelling assets easilyQuestion 16 of 2017. In WDV method, the value of the assetBecomes zero quicklyIncreasesNever reaches zeroRemains sameQuestion 17 of 2018. Which is not a factor to consider while charging depreciation?Cost of AssetUseful LifeScrap ValueInsurance PremiumQuestion 18 of 2019. The reduction in asset value due to depletion is common inPatentsBuildingsMinesVehiclesQuestion 19 of 2020. The cost of repairs on second-hand assets isIgnoredAdded to revenueAdded to original costDeducted from capitalQuestion 20 of 20 Loading...
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