• Rs. 1000
• Rs. 900
• Rs. 700
• Rs. 810

• Depreciation
• Depletion
• Fluctuation
• Amortization
• #### 3.  Depreciation on the diminishing balance method of Rs. 2000 at the rate of 10% p.a after three years will be: 2015

• Rs. 1400
• Rs. 1458
• Rs. 542
• None of these
• #### 4.  What is the total amount whatsoever received by selling used or obsolete asset or its spare parts known as?

• Scrap Value
• Salvage Value
• Residual Value
• All of these

• Amortization
• Depreciation
• Appreciation
• Depletion
• #### 6.  The period during which the asset will help in earning income of business is known as: 2016

• Consumed life
• Expired life
• Exhausted life
• Working life
• #### 7.  In straight line method, depreciation is calculated on: 2018

• Book value
• Market value
• Scrap value
• Original cost
• #### 8.  Daniel’s Print Shop purchased a new printer for $35,000. Each year it depreciates at a rate of 5%. How much will the printer be worth in 8 years? •$23,219.72
• $136.72 •$51,710.94
• $16,710.94 • #### 9. The tax rate used to calculate property taxes. • loss on plant asset • plant asset record • salvage value • milage rate • #### 10. Ashley's parents bought a house in 2009 for$118,000. The home's value increases at a rate of 9% annually. How much will the house be worth in 2018? In 2020?

• $256,283;$304,490
• $280,778;$304,490
• $256,283;$374,505
• $190,245;$225,680
• #### 11.  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 equation that models this problem?

• y= 7650(.14)3
• y= 7650(.86)3
• y= 7650(1+.86/1)3*1
• #### 12.  A method that recognizes a full year's depreciation if the asset is acquired in the first half of the year.

• modified half-year convention
• straight-line-depreciation
• salvage value
• units-of-production method
• #### 13.  The decrease in the value of a plant asset because of the removal of a natural resource.

• salvage value
• loss on plant asset
• depletion
• gain on plant asset
• #### 14.  Land and anything attached to it; also called real estate.

• assessed value
• real property
• personal property
• units-of-production method
• #### 15.  Salem has a population of 15,000 and depreciates at a rate of 8% per year. What is the exponential equation?

• P = 15,000(-.92)t
• P=15,000(1.08)t
• P=15,000(0.92)t
• P=15,000(.08)t
• #### 16.  The amount that will be received for an asset at the time of its disposal.

• straight-line-depreciation
• units-of-production method
• assessed value
• salvage value
• #### 17.  Which fixed asset is LEAST likely to lose its value over time?

• land
• equipment
• buildings
• new delivery van

• True
• False

• y=5000(0.7)x
• y=30(5000)x
• y=5000(1.3)x
• y=5000xx
• #### 20.  The original cost of a plant asset minus accumulated depreciation. (p. 451)

• current assets
• plant assets
• salvage value
• book value of a plant asset
• #### 21.  How is depreciation classified?

• As an asset
• As an expense
• As capital
• none of the above
• #### 22.  What is the name of the account that shows depreciation accumulating?

• Depreciation Account
• Doubtful Depreciation
• Diminishing Depreciation
• Provision for Depreciation Account
• #### 23.  Depreciation arises due to -

• Fluctuations
• Fall in the value of money
• Temporary fall in the market value of asset
• Physical Wear and tear
• #### 24.  Main objective of charging depreciation is-

• Ascertaining true profit or loss
• Ascertaining true financial position
• Ascertaining true cost of production
• All of the above
• #### 25.  Characteristic of a depreciation is -

• Decline in the value of assets
• Depreciation is a permanent nature
• Depreciation is a known case expense
• All of these
• #### 26.  To calculate book value of an asset...

• original value times the amount of depreciation
• amount of depreciation divided by current value
• original value minus amount of depreciation
• original value divided by depreciation per year
• #### 27.  Depreciation is the process of -

• Valuation of asset
• Allocation of the cost of asset
• Valuation and allocation of the cost of asset
• None of the above
• #### 28.  Factors taken into consideration for providing depreciation are -

• Total cost of assets
• Estimated useful life of the asset
• Estimated scrap value of the asset
• All of the above
• #### 29.  A type of accelerated depreciation that multiplies the book value of an asset by a constant depreciation rate to determine annual depreciation.

• declining-balance-depreciation
• assessed value
• Modified Accelerated Cost Recovery System (MACRS)
• straight-line-depreciation
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