CBSE  /  Class 11  /  Accountancy  /  Depreciation, Provisions and Reserves

  • 1. 
    Provision is created by debiting :

  • Profit and Loss Account
  • None of these
  • Profit and Loss Appropriation Account
  • Trading Account

  • 2. 
    The cause of Depreciation is :

  • Wear and tear
  • Obsolescence
  • All of these
  • Usage of Asset

  • 3. 
    Depreciation is a process of :

  • Allocation
  • Valuation
  • None of these
  • Depletion

  • 4. 
    Under Reducing Balance Method, depreciation to be charged :

  • Scrap Value
  • None of these
  • Real Value
  • Original value

  • 5. 
    The depreciation charged on an asset will be credited to :

  • Depreciation A/c
  • Asset A/c
  • Bank A/c
  • Cash A/c

  • 6. 
    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

  • 7. 
    Following are the causes of Depreciation except

  • Wear and tear due to use or passage of time.
  • normal factors
  • Expiration of legal rights.
  • Obsolescence.

  • 8. 
    Following are the causes of Depreciation except

  • Natural resources
  • Fixed asset
  • Liabilities
  • Intangible assets

  • 9. 
    An alternative term used for accumulated depreciation expenses?

  • Provision for depreciation
  • Cumulative depreciation
  • Targeted depreciation
  • Depletion

  • 10. 
    Depreciation charged under diminishing method

  • Increase every year
  • Decrease every year
  • Increase in one year and decrease another year
  • Same every year
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