Page 2 - Objective Questions
P. 2
Q- Under the straight-line method of providing depreciation, it:
a) Increases every year
b) Decreases every year
c) Remains constant every year
d) None of the give options
Q- Depreciation to machinery debited to:
a) Profit & loss a/c
b) Machinery a/c
c) Depreciation a/c
d) Expenses and loss a/c
Q- Total amount of depreciation of an asset cannot exceed its:
a) Scrap value
b) Market value
c) Depreciation value
d) None of these
Q The loss on sale of asset is debited to
a) Reserve
b) Depreciation fund
c) Profit & loss A/c
d) None of these
Q The WDV method means a method by which –
a) The rate of depreciation falls year by year.
b) The amount on which depreciation is calculated falls year by year.
c) The rate as well as the amt. to which it is applied fall year by year.
d) None of the above.
Q The amt of depreciation charged on machinery is debited to –
a) Depreciation account.
b) Machinery account.
c) Provision for depreciation account
d) None of these.
