MCQ Chapter 7 Accountancy Class 11 Maharashtra Board Depreciation 1. Market value affects depreciation whenMarket value increasesCost is lowMarket value drops below costAsset is insuredQuestion 1 of 202. Under Fixed Instalment Method, book value of asset is reduced byVariable amountEqual amountRate of marketSale priceQuestion 2 of 203. On sale of asset, loss is recorded inTrading A/cAsset A/cLoss on Sale of Asset A/cCapital A/cQuestion 3 of 204. In WDV method, depreciation isIncreasing every yearDecreasing every yearConstantVariable only for first yearQuestion 4 of 205. At the end of life, asset’s book value is equal toOriginal costInsurance claimScrap valueRevaluationQuestion 5 of 206. Purchase of an asset on credit is recorded byCrediting Bank A/cCrediting Asset A/cCrediting Supplier’s A/cCrediting Depreciation A/cQuestion 6 of 207. Depreciation is charged on assets to reflectCapital gainLoss due to obsolescenceLiquidityTax benefitQuestion 7 of 208. On sale of asset at book value, the journal entry includes credit toCapital A/cProfit on Sale A/cAsset A/cCash A/cQuestion 8 of 209. Profit on sale of asset is transferred toRevaluation A/cTrading A/cCapital Reserve A/cProfit and Loss A/cQuestion 9 of 2010. When loss is made on sale of asset, which account is debited?Asset A/cProfit and Loss A/cLoss on Sale A/cCash A/cQuestion 10 of 2011. Repairs incurred before using second-hand asset are added toAsset A/cRepairs A/cCapital A/cPurchase A/cQuestion 11 of 2012. Which of the following is a wasting asset?FurnitureTrademarkForestPlantQuestion 12 of 2013. When asset is sold at profit, which entry is passed?Asset A/c Dr.Profit on Sale A/c Dr.Bank A/c Dr.Supplier A/c Dr.Question 13 of 2014. Under which method is depreciation highest in early years?Straight Line MethodRevaluation MethodWritten Down Value MethodMachine Hour Rate MethodQuestion 14 of 2015. In SLM, profit isLower in early yearsHigher in early yearsConstant throughoutIrrelevantQuestion 15 of 2016. Which depreciation method is accepted by law for tax purposes?Straight LineWritten Down ValueRevaluationMachine Hour RateQuestion 16 of 2017. On revaluation, asset value is adjusted byCostMarket conditionsScrap valueEstimated lifeQuestion 17 of 2018. Which is not a journal entry for asset accounting?Asset A/c Dr.To Bank A/cDepreciation A/c Dr.To Asset A/cProfit A/c Dr.To Asset A/cP&L A/c Dr.To Depreciation A/cQuestion 18 of 2019. Loss due to fire is accounted underDepreciationCapital LossNatural Calamity LossProfit and Loss A/cQuestion 19 of 2020. Book value after depreciation is known asCapital ValueScrap ValueResidual ValueWritten Down ValueQuestion 20 of 20 Loading...
Leave a Reply