eVidyarthi

Depreciation, Provisions and Reserves Quizz

1.
Every fixed asset loses its value due to use or other reasons. This decline in the value of asset is known as

Amortization

Provisions

Depreciation

Devaluation
 
 
 
 

Question 1 of 10

2.
Following are the causes of Depreciation except

Wear and tear due to use or passage of time.

normal factors

Expiration of legal rights.

Obsolescence.
 
 
 
 

Question 2 of 10

3.
The term depletion is used for :

A. Natural resources

Fixed asset

Liabilities

Intangible assets
 
 
 
 

Question 3 of 10

4.
An alternative term used for accumulated depreciation expenses?

A. Provision for depreciation

Cumulative depreciation

Targeted depreciation

Depletion
 
 
 
 

Question 4 of 10

5.
Depreciation charged under diminishing method

Increase every year

Decrease every year

Increase in one year and decrease another year

Same every year
 
 
 
 

Question 5 of 10

6.
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
 
 
 
 

Question 6 of 10

7.
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
 
 
 
 

Question 7 of 10

8.
An alternative term used for accumulated depreciation expenses?

A. Provision for depreciation
B. Depletion
C. Targeted depreciation
D. Cumulative depreciation
 
 
 
 

Question 8 of 10

9.
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
 
 
 
 

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
 
 
 
 

Question 10 of 10