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

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.

Question 2 of 10

The term depletion is used for :

A. Natural resources

B. Fixed asset

C. Liabilities

D. Intangible assets

Question 3 of 10

An alternative term used for accumulated depreciation expenses?

A. Provision for depreciation

B. Cumulative depreciation

C. Targeted depreciation

D. Depletion

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

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

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

Question 7 of 10

An alternative term used for accumulated depreciation expenses?

A. Provision for depreciation

B. Depletion

C. Targeted depreciation

D. Cumulative depreciation

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

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