CBSE Questions for Class 10 Elements Of Book Keeping And Accountancy Depreciation Quiz 1 - MCQExams.com

Which method of depreciation is suitable when expenditure on repairs and maintenance increases as the machine grows old?
  • Reducing Balance Method
  • Straight Line Method
  • Machine Hour Rate Method
  • Sinking Fund Method.
For depreciation mines, the suitable method is:
  • Straight Line
  • WDV
  • Depletion
  • Annuity Method
An asset is never reduced to zero in the _______________.
  • Fixed instalment method.
  • Reducing balance method.
  • Annuity method.
  • Sum of years method.
The amount of depreciation charged to Profit and Loss Account varies every year under _________.
  • Fixed installment method
  • Annuity method
  • Diminishing balance method
  • Insurance policy method
If the total charge of depreciation and maintenance is considered as the method which would provide a uniform charge is?
  • Annuity method
  • Straight line method
  • Diminishing balance method
  • Insurance policy method
The amount of depreciation under straight line method vis-vis written down value method, when the rate of depreciation is same, would be:
  • Equal in all years
  • Equal in the first year but higher is subsequent years
  • Equal in the first year but lower in subsequent years
  • Lower in the first year but equal in subsequent years
Under which of the following methods of depreciation, amount of depreciation varies every year
  • Written Down Value Method
  • Straight Line Method
  • Amount of depreciation does not vary on year to year basis
  • None of the above
A company has bought patents. Which of the following methods is most suitable for providing depreciation on them?
  • SLM
  • WDV
  • Sum of year digits
  • Any of the above
An asset is purchased for Rs. 50,000 on which depreciation is to be provided annually according to the straight line method. The useful life to the asset is 10 years and the residual value is Rs. 10,The rate of depreciation is?
  • 20%
  • 18%
  • 10%
  • 8%
Straight line method is also known as ___________________.
  • Fixed installment method
  • Depreciable method
  • Valuable method
  • None
The depreciation amount in straight line method remains _____________________ for every year.
  • Fixed
  • Variable
  • Changing
  • None
Under the __________ method of charging depreciation , depreciation is calculated on original cost.
  • Straight line
  • Diminishing balance
  • Annuity
  • Insurance policy
Straight Line method is suitable for those assets whose useful life can be estimated _____________.
  • Faulty
  • Perfect
  • Accurately
  • None
The Diminishing Balance Method of providing depreciation states ______________.
  • The amount on which depreciation is provided is reduced from year to year
  • The rate per cent and also the amount are reduced from year to year
  • The rate per cent at which depreciation is written of goes on declining from year to year
  • None of the above
Asset purchase in 2020 at Rs.Calculate the depreciation amount for 2years @10p.a. under written down value method ____________.
  • Rs. 3800
  • Rs. 4000
  • Rs. 3500
  • Rs. 3850
Written Down value Method is also known as _____________.
  • Reducing balance method
  • Straight line method
  • Fixed installment method
  • Zero installment method
The straight line method is based on __________________ assumption of same amount.
  • Faulty
  • Correctly
  • Accurately
  • Perfectly
Under written down value method it is ______________________ to ascertain a suitable rate of depreciation.
  • Easy
  • Convenient
  • Difficult
  • None
Under written down value method the depreciation amount ___________________ every year.
  • changes
  • fixed
  • increases
  • none
The method of depreciation under which depreciation is calculated on original cost of an asset is known as ____________ .
  • Straight Line
  • Original Cost
  • Fixed Installment method.
  • All of these
The method of depreciation in which the amount of depreciation is not constant every year is _____________ .
  • Written Down Value method
  • Reducing Balance method
  • Diminishing Balance method
  • All of these
Which method is followed to have a uniform charge for depreciation and repairs and maintenance together :
  • Written Down Value Method
  • Straight Line Method
  • Double Declining Method
  • Sum of Years Digit Method
Under ________ system, amount of depreciation changes every year.
  • Reducing Balance
  • Fixed Instalment
  • Depreciation Fund
  • Annuity
Under ________ method, depreciation is calculated on written down value.
  • Fixed Instalment
  • Reducing Balance
  • Revaluation
  • Depletion
Under ___________ system, the amount of depreciation remains constant every year.
  • Fixed Instalment
  • Reducing Balance
  • Insurance Policy
  • Annuity
In Straight Line Method of depreciation, the amount of depreciation remain ___________ every year.
  • constant
  • increased
  • fluctuating
  • decreased
The estimated value of depreciable assets after useful life is called __________.
  • actual value
  • replacement value
  • disposal value
  • current value
The number of years an asset is expected to be useful before it wears out is called its ___________.
  • life expectancy
  • estimated useful life
  • estimated physical life
  • projected life
Under the __________ system of depreciation, the amount of depreciation does not change from year to year.
  • Fixed Instalment
  • Reducing Balance
  • Depletion
  • Machine Hour Rate
$$Depreciation = \dfrac {\text {Cost of Asset less Scrap Value}}{\text {Estimated Working  ____________ of Asset}}$$.
  • Life 
  • Hours
  • Days
  • Months
0:0:1


Answered Not Answered Not Visited Correct : 0 Incorrect : 0

Practice Class 10 Elements Of Book Keeping And Accountancy Quiz Questions and Answers