Quiz  /  Depreciation Class 11 MCQ Questions With Answers

  • 1. 
    Your shiny new boat cost $7650. The depreciation for your boat is 14% per year. Estimate the value of your vehicle in 3 years. What is the answer?

  • $20.99
  • $49,226.64
  • $11,333.81
  • $4865.82

  • 2. 
    The net book value of assets is obtaining by deducting _______ with accumulated depreciation.

  • depreciation
  • market value
  • percentage of depreciation
  • cost

  • 3. 
    What will be the amount of depreciation of plant for fifth year as per straight line method when original cost of plant $1,000,000; Salvage value $40,000 , Expected useful life 10 years?

  • $62,000
  • $84,000
  • $76,000
  • $96,000

  • 4. 
    Find the amount of depreciation chargeable under the straight line method for the second year if amount for first year is $4,000

  • $4000
  • $4400
  • $8000
  • $7600

  • 5. 
    Residual value of the asset means:

  • The price paid on the purchase of asset
  • The amount realised on the sale of asset
  • The net amount expected to realise on final disposal of assets
  • Reduced value of the asset every year

  • 6. 
    Depreciation is defined as: allocation of __________of non-current asset over its ______________________.

  • selling price remaining life
  • costuseful life
  • costremaining life
  • selling priceuseful life

  • 7. 
    The value of asset recorded in the statement of financial position is at

  • cost
  • market value
  • net book value
  • cost plus accumulated depreciation

  • 8. 
    A machinery costing ₹ 5,00,000 is depreciated @ 20% p.a. at straight line method. At the end of three years, the book value of the machinery will be :

  • ₹ 3,50,000
  • ₹ 2,50,000
  • ₹ 2,00,000
  • ₹ 3,00,000

  • 9. 
    How is depreciation classified?

  • As an asset
  • As an expense
  • As capital
  • none of the above

  • 10. 
    What is the one asset that can NEVER be depreciated?

  • Financing Costs
  • Land
  • Deferred Financing Cost
  • Land Improvements

  • 11. 
    Only ___________ assets are depreciated.

  • Fixed
  • Current
  • Short-term
  • Intanglible

  • 12. 
    Under straight line method if the cost of asset is 45000 and scrap value is 5000 anduseful life is 10 year, then the amount of depreciation will be:

  • 4500
  • 4000
  • 5000
  • 2000

  • 13. 
    An asset whose life will extend over more than one accounting period is called a

  • liability
  • current asset
  • non current asset
  • non current liability

  • 14. 
    What is the name of the account that shows depreciation accumulating?

  • Depreciation Account
  • Doubtful Depreciation
  • Diminishing Depreciation
  • Provision for Depreciation Account

  • 15. 
    How often is depreciation recorded?

  • Weekly
  • Monthly
  • Yearly
  • Daily

  • 16. 
    Which cause of depreciation is stated in the above picture?

  • Wear and Tear
  • Obsolescence
  • Efflux of time
  • All of the above

  • 17. 
    Which method of depreciation calculates a depreciation cost that is the same or a uniform amount per annum?

  • Fixed Installment
  • Diminishing Balance
  • Revaluation
  • Cost method

  • 18. 
    How many methods of depreciation are there?

  • 1
  • 2
  • 3
  • 4

  • 19. 
    How is depreciation recorded

  • Debit - Profit & Loss (Depreciation Expense) / Credit - Provision for Depreciation
  • Credit - Profit & Loss (Depreciation Expense) / Debit - Provision for Depreciation
  • Debit - The Asset purchased / Credit - Provision for Depreciation
  • Credit - Machinery Disposal / Debit - Provision for Depreciation
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