Depreciation, Provisions and Reserves Quizz

Every fixed asset loses its value due to use or other reasons. This decline in the value of asset is known as

A. Amortization

B. Provisions

C. Depreciation

D. Devaluation

Your comments:

Question 1 of 10

Following are the causes of Depreciation except

A. Wear and tear due to use or passage of time.

B. normal factors

C. Expiration of legal rights.

D. Obsolescence.

Your comments:

Question 2 of 10

The term depletion is used for :

A. Natural resources

B. Fixed asset

C. Liabilities

D. Intangible assets

Your comments:

Question 3 of 10

An alternative term used for accumulated depreciation expenses?

A. Provision for depreciation

B. Cumulative depreciation

C. Targeted depreciation

D. Depletion

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Question 4 of 10

Depreciation charged under diminishing method

A. Increase every year

B. Decrease every year

C. Increase in one year and decrease another year

D. Same every year

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Question 5 of 10

Which of the following is not a type of reserve

A. Provision for bad debt

B. General reserve

C. Workmen compensation fund

D. Retained earnings

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Question 6 of 10

What is depreciation?

A. Cost of using a fixed asset

B. The value of asset

C. Portion of a fixed assets cost consumed during the current accounting

D. Cost of fixed asset’s repair

Your comments:

Question 7 of 10

An alternative term used for accumulated depreciation expenses?

A. Provision for depreciation

B. Depletion

C. Targeted depreciation

D. Cumulative depreciation

Your comments:

Question 8 of 10

What is the rate of charging depreciation under diminishing method?

A. 12% p.a.

B. 15% p.a.

C. 10% p.a.

D. Not fixed

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Question 9 of 10

10.

Under which depreciation method the amount of depreciation expenses remains same throughout the useful life of a fixed asset

A. Straight line method

B. Reducing balance method

C. Number of units produced method

D. Machine hours method

Your comments:

Question 10 of 10