CBSE Questions for Class 10 Elements Of Book Keeping And Accountancy Depreciation Quiz 2 - MCQExams.com

The amount of depreciation goes on decreasing in every year under the _________ method.
  • Fixed Instalment
  • Straight line
  • Revaluation
  • Written down value
Under the written down value method depreciation is calculated on the original cost of an asset.
  • True
  • False
The part of the depreciable cost of an asset which is yet to be written off is known as ____________.
  • Residual Value
  • Written Down Value
  • Closing Value
  • None of the Above
____________ is a method that spreads the depreciable value evenly over the useful life of an asset.
  • SLM
  • DDB
  • WDV
  • None of the above
___________ method is normally recommended for amortization of intangible assets.
  • SYD
  • SLM
  • WDV
  • DDB
____________ method has smallest depreciation in the first year.
  • Double declining
  • SLM
  • Sum of digits
  • Reducing
Under diminishing balance method, annual depreciation ___________.
  • Increases every year
  • Decreases every year
  • Is constant every year
  • None of the above
_________ is not a method of depreciation.
  • Straight line method
  • Replacement method
  • Reducing balance
  • Revaluation
A Principal objection to SLM of depreciation is that it ___________.
  • provides for declining productivity of an asset
  • ignores variations in the rate of assets use
  • tends to result in a constant rate of return on a diminishing investment base
  • ives smaller periodic write offs than decreasing charge method
__________ method has greatest depreciation in the first year.
  • SLM
  • Double declining
  • Sum of digits
  • Reducing
Under ____________ method depreciation is calculated on book value.
  • Straight Line Method
  • Double declining method
  • Reducing balance
  • Revaluation method
If the annual depreciation charge on an asset for three years is 
Rs. $$6000$$, Rs. $$5400$$, Rs. $$4860$$. Discuss the method of depreciation followed by the company.
    • Sum-of-the-Years' Digits Method
    • Straight Line Method
  • Written Down Value Method
  • Unit of Production Method
An asset was shown in the Balance sheet during the last three years at $$Rs. 50000$$, $$Rs.45000$$ and $$Rs.40000$$, the depreciation for $$4th$$ year will be ___________.
  • $$Rs. 4,000$$
  • $$Rs. 5,000$$
  • $$Rs. 4,500$$
  • $$Rs. 3,980$$
An asset is subject to $$10\%$$ depreciation on reducing balance method. If the book value of the asset as on $$31.03.13$$ is Rs. $$45000$$. The annual depreciation for the year $$2014-15$$ amounted to _________.
  • Rs. $$4500$$
  • Rs. $$4050$$
  • Rs. $$5000$$
  • Rs. $$4800$$
In the case of assets used for generation and distribution of power, the Income-tax Act  prescribe which of the following method of depreciation.?
  • Sum of digits method
  • Straight line method
  • Annuity method
  • Depletion method
____________ is disadvantage of written down method of depreciation.
  • The value of Asset can never be completely written off on the books of a/c
  • It is difficult to apply
  • It charges higher depreciation in the initial years.
  • It reduces profits in the initial years
Under which method of depreciation the depreciable cost of an asset is charged to profit and loss a/c in equal proportion during the working life of the asset ?
  • WDM
  • SLM
  • Sinking fund method
  • Depletion method
Under ____________ method charge to revenue is uniform every year.
  • WDV
  • SLM
  • Sinking fund method
  • Depletion method
Which of the following is one of the objection against straight line method of depreciation?
  • It ignores time value of money
  • It ignores variations in the rate of use of assets
  • It provides for the declining productivity of an aging assets
  • All the three
In which of the following cases straight line method of depreciation is not appropriate?
  • Assets on which repair and maintenance cost increases with age
  • Assets on which repair and maintenance cost decreases with age
  • High value equipment
  • Low cost office equipment
The book value of an asset on $$1-4-2013$$ is Rs. $$80,000$$. The asset is sold on $$31-12-2013$$ for Rs. $$60,000$$. If the rate of depreciation is $$15\%$$ on written down value, what is the profit and loss on sale of the Asset.
  • Rs. $$12,500$$ loss
  • Rs. $$11,000$$ loss
  • Rs. $$11,250$$ profit
  • Rs. $$12,000$$ profit
Gross book value of a group of asset is Rs. $$120,000$$ and total accumulated depreciation of Rs. $$24,000$$ and current depreciation of Rs. $$2000$$. The net book value of the asset is ___________.
  • $$94,000$$
  • $$96,000$$
  • $$98,000$$
  • $$1,00,000$$
Under which method of depreciation annual de-preciation remains constant.
  • Reducing Balance Method
  • Straight Line Method
  • Annuity Method
  • None
The book value of an asset on 1-4-2006 is Rs. 1,80,The asset is sold on 31-12-2006 for Rs. 1,20,If the rate of depreciation is 10% on written down value. What is the profit and loss on sale of the asset? 
  • Rs. 42,000
  • Rs. 46,500
  • Rs. 51,250
  • Rs. 60,000
Under which method of depreciation annual depreciation charges bears a fixed $$\%$$ of the original depreciable value of the assets.
  • Sinking fund method
  • Sum of years digit method
  • Written down value method
  • Straight line method
Depreciable amount of a fixed asset represents..........
  • Historical cost less residual value
  • Historical cost
  • Historical cost less cost of disposal
  • Book value less scrap value
Under which method of depreciation annual depreciation charges bears a fixed % of book value of the assets
  • Sinking fund method
  • Sum of years digit method
  • Written down value method
  • Straightline method
If a company follows the written down value method of depreciating machinery year after year, it is due to __________.
  • Comparability
  • Convenience
  • Consistency
  • All of the above
Under which method of, depreciation annul depreciation goes on decreasing.
  • Reducing balance method
  • Straight line method
  • Annuity method
  • None
The cost of a fixed asset which is to be depreciated every year is called
  • Depreciable cost
  • Purchase cost
  • Acquisition cost
  • Book value
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