Depreciation is decline in the value of ________.

1

(a)

Assets

Installation, freight and transport expenses are a part of __________.

1

(a)

Acquisition cost

Provision is a _________ against profit.

1

(a)

Charge

Reserve created for maintaining a stable rate of dividend is termed as _________.

1

(a)

Dividend equalisation fund

Depreciation is also a non-cash expense.

1

(a) True

(b) False

Depreciation is also charged on current assets.

1

(a) True

(b) False

Depreciation is decline in the market value of tangible fixed assets.

1

(a) True

(b) False

The main cause of depreciation is wear and tear caused by its usage.

1

(a) True

(b) False

Depreciation must be charged so as to ascertain true profit or loss of the business.

1

(a) True

(b) False

Depletion term is used in case of intangible assets.

1

(a) True

(b) False

What is meant by Depreciation?

1

(a)

Name the accounting standard which governs depreciation.

1

(a)

AS-6

What is meant by Depletion?

1

(a)

Depletion is the term used for exhaustion of natural resources.

What is meant by Amortisation?

1

(a)

Amortisation means writing down the intangible assets such as patents, copyrights, trademarks.

What is meant by obsolescence?

1

(a)

Obsolescence means reduction in the value of the asset due to technological changes.