Under straight line method, the amount of depreciation is ____.

(a)

Increasing every year

(b)

Decreasing every year

(c)

Constant for all the years

(d)

Fluctuating every year

Cash received from sale of fixed asset is credited to ____________

(a)

Profit and loss account

(b)

Fixed asset account

(c)

Depreciation account

(d)

Bank account

Depreciation is caused by ____.

(a)

Lapse of time

(b)

Usage

(c)

Obsolescence

(d)

a, b and c

For which of the following assets, the depletion method is adopted for writing off cost of the asset?

(a)

Plant and machinery

(b)

Mines and quarries

(c)

Buildings

(d)

Trademark

The written down value is the true value of ________ assets

(a)

fixed

(b)

current

(c)

tangible

(d)

intangible

__________ means the amount incurred in acquiring the asset.

(a)

Original cost of the asset

(b)

Scrap value of an asset

(c)

Estimated useful life of the asset

(d)

None of these

____________ is also knonw as written downvalue method or reducing instalments method.

(a)

Straight line method

(b)

Diminishing balance

(c)

Annuity method

(d)

Revaluation method

If original cost of the asset is Rs.1,00,000 and the rate of depreciation is 10% per annum. The depreciation in the first year will be Rs.___________

(a)

Rs. 10,000

(b)

Rs. 1,000

(c)

90,000

(d)

1,00,000

_________________ means exhaustion of natural resources.

(a)

Depletion

(b)

Depreciation

(c)

Revaluation

(d)

None of these

Selling price of a machinery is Rs.80,000. Loss on sale was Rs.20,000. The book value of the machinery is_____________

(a)

Rs. 1,00,000

(b)

Rs. 60,000

(c)

Rs. 20,000

(d)

Rs. 50,000