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Published on: 28/08/2019
Depreciation, Provisions and Reserves
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Questions + Answers key
Take MCQ Accountancy Test
1.
What is meant by Depreciation?
2.
What is meant by obsolescence?
3.
What is meant by Amortisation?
4.
What is meant by Depletion?
5.
Name the accounting standard which governs depreciation.
6.
Depletion term is used in case of intangible assets.
7.
Depreciation must be charged so as to ascertain true profit or loss of the business.
8.
The main cause of depreciation is wear and tear caused by its usage.
9.
Depreciation is decline in the market value of tangible fixed assets.
10.
Depreciation is also charged on current assets.
11.
Depreciation is also a non-cash expense.
12.
Reserve created for maintaining a stable rate of dividend is termed as _________.
13.
Provision is a _________ against profit.
14.
Installation, freight and transport expenses are a part of __________.
15.
Depreciation is decline in the value of ________.
1.
Depreciation is a gradual decrease in the value of fixed assets due to wear and tear, usage and obsolescence, etc.
2.
( )
Obsolescence means reduction in the value of the asset due to technological changes.
3.
( )
Amortisation means writing down the intangible assets such as patents, copyrights, trademarks.
4.
( )
Depletion is the term used for exhaustion of natural resources.
5.
( )
AS-6
6.
(b)
7.
(a)
8.
(a)
9.
(b)
10.
(b)
11.
(a)
12.
( )
Dividend equalisation fund
13.
( )
Charge
14.
( )
Acquisition cost
15.
( )
Assets
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