Quiz 39

Depreciation
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20 MCQs with the right answers
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Q1. Depreciation is a cash expense.*

1 mark

True

False

Q2. Depreciation is a capital expenditure.*

1 mark

False

True

Q3. Which of the following asset is not depreciated?*

1 mark

Building

Machinery

Laptops

Land

Q4. Provision for depreciation is a _____ account.*

1 mark

artificial

valuation

real

nominal

Q5. In _____ method, fixed amount of depreciation is charged annually.*

1 mark

declining balance

straight line

written down value

units of production

Q6. On which of the following is depreciation charged?*

1 mark

None of them

Software

Goodwill

Patent

Q7. While charging depreciation, we distribute the cost over _____.*

1 mark

half life

quarter life

useful life

actual life

Q8. Asset = 10,000, Depreciation = 40%, Asset Value after 1 Year = _____.*

1 mark

10000

6000

4000

5000

Q9. _____ is another name for straight line method of depreciation.*

1 mark

Diminishing Value Method

Reducing Balance Method

Written Down Value Method

Original Cost Method

Q10. 'Depreciation A/C' is _____ to record the journal entry for depreciation.*

1 mark

not used

debited

balanced

credited

Q11. _____ is usually not to depreciate.*

1 mark

Machinery

Building

Land

Tools & Equipment

Q12. Which of the following is depreciated?*

1 mark

Preliminary Expenses

Copyrights

Tools & Equipment

Land

Q13. Depreciation is charged on all tangible assets.*

1 mark

False

True

Q14. Depreciation is shown on _____.*

1 mark

footnotes to balance sheet

trading account

balance sheet

profit & loss account

Q15. _____ depreciation means sum of all depreciation charged till date.*

1 mark

Net

Adjusted

Gross

Accumulated

Q16. Diminishing value method is also called _____ method.*

1 mark

written-down method

comprehensive method

straight-line method

units of production

Q17. Which of the following is not a method of depreciation.*

1 mark

Impairment Method

Written-down Value Method

Straight-line method

Diminishing Value Method

Q18. Main reasons for charging depreciation are normal usage and _____.*

1 mark

company law

government policies

income tax policies

wear & tear

Q19. Depreciation is for tangible fixed assets whereas _____ is for intangible assets.*

1 mark

deterioration

amortization

depletion

obsolescence

Q20. Depreciation is _____ in the value of a tangible fixed asset.*

1 mark

reduction

addition

inflation

recalculation

Quiz 39 – Depreciation

Quiz 39

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