Depreciation - class-XI
Description: depreciation | |
Number of Questions: 76 | |
Created by: Jayanti Mahajan | |
Tags: depreciation accountancy depreciation, provision and reserve |
Depletion term is used in case of intangible assets.
Type of asset on which depreciation is provided is known as _________ .
Double-declining method is often used in ________.
Depreciation is to be calculated from the date of _____________________.
Which of the following is Depleted?
Depletion method depreciation is normally applied in case of _________ assets.
Which one of the following depreciation methods is most suitable for a coal mine?
Match List-I with List-II and select the correct answer using the codes given the lists.
List-I | List-II |
---|---|
I. Amortisation | (a) Diminition in the life of the assets due to excessive use |
II. Depreciation | (b) Exhaustion of natural resource |
III. Depletion | (c) Expiration of tangible assets |
IV. Obsolescence | (d) Expiration of intangible assets |
(e) Economic deterioration due to improved inventions |
Match List-I with List-II and select the correct answer using the codes given the lists.
List-I | List-II |
---|---|
I. Uncertain liability | (a) Amortisation |
II. Expiry of tangible asset | (b) Long-term liability |
III. Basis for all valuations in the balance sheet | (c) Research and development |
IV. Accounting standard-As-$8$ | (d) Estimated obligation |
(e) Conservation convention |
__________ reduces the availability of the quantity of the material or asset.
_____________________ refers to writing-off the cost of intangible assets.
Depreciation is always charged on ______ Assets.
The money value which is obtained after selling an asset is called __________.
Depreciation increase the value of asset.
The term "__________" is used for the process of measuring and recording the exhaustion of natural resources.
_____________ is/are subject to depletion rather than depreciation.
A machinery was purchased on $1-1-2013$. It was delivered on $1-4-2013$. The installation was completed on $1-7-2013$. The trail run was completed on $30-9-2013$ and was made available for use on $1-10-2013$. The actual utilization started from $1-12-2013$. The effective period for calculation of depreciation for $2013$ is __________.
ABC Ltd. paid Rs. $24$ lakh for use of copy right purchased. This amount can be written off under _________ method of depreciation.
Depreciation fund method is also known as _________.
Which of the following terms is used to describe the process of writing down the long-term investments in intangible assets?
Leasehold property is generally depreciated by ______________.
Given that the value of furniture on $1-1-2001$ is $Rs. 80,000$ furniture purchased during the year is $Rs. 40,000$, sale of furniture on no loss on profit basis is $Rs. 20,000$ and the furniture is valued at $Rs. 70,000$ on $31.12.2001$, the depreciation for the year $2001$ will be _______________.
The method of depreciation is applied consistently to provide comparability of the results of the operations of the enterprise from period to period. A change from one method of providing depreciation to another is made only ______________.
Match the followings:
List I | List II |
---|---|
A. Amortization | 1. Diminution in the life of the asset due to excessive use |
B. Depreciation | 2. Exhaustion of natural resources |
C. Depletion | 3. Expiration of tangible assets |
D. Obsolescence | 4. Expiration of intangible assets |
5. Economic deterioration due to improved inventions |
In which of the following method, the asset appears at its original cost throughout its life?
Leasehold property is generally depreciated by ___________.
The amount of annual instalment to depreciation funds is ______________.
Revaluation system of depreciation should be used:
Annuity method is much suited to those assets _____________.
Interest is debited to asset account in ______________.
Under sum of years digit method, the amount of depreciation.
Under annuity method, the amount of depreciation _____________.
Which method of charging depreciation considers that the business besides losing the original cost of the asset also loses interest on the amount used for buying the asset?
Choose the correct statement _________________________.
Fundamental objective of depreciation is/are ________.
For charging depreciation, on which of the following assets, the depletion method is adopted?
For which of the following asset depreciation can be applied?
(I) Land
(II) Furniture
(III) Machinery
Which of the following is odd one?
Which of the following method is applicable in case of wasting assets, i.e., mines, quarries, oil well etc.?
On 1.1.2015, N Ltd. has a stock of bottles valued at Rs. $8,000$. On 1.7.2015, they purchased additional bottles which amounted to Rs. $5,000$ on 31.12.2015, the stock of bottles were revalued at Rs. $10,500$. Depreciation on bottle = ?
In 2012, S Ltd. acquired a machine at a cost of Rs. $50,000$. The Production Units for first three years are $15,000$; $20,000$ and $25,000$ respectively. Depreciation for the third year = ?
Sum of years digits method is _________ type of depreciation providing method.
In annuity method interest is calculated on ________.
When depreciation fund account closes, it transfers its balance to ___________.
Change in depreciation method requires ________.
From a coal mine 200 tons of coal was extracted during the year and rate of depreciation is 10%. Depreciation charged as per depletion method will be ________.
For changing the method of calculation of depreciation an enterprise should not ___________.
Sinking fund is created in ___________.
Depreciation fund method is also known as ________.
The method is specially suited to natural resources (mines, quarries, sand, pits etc.) is said to be ________.
Depreciation is generally provided on ______________.
On which of the following asset depreciation cannot be provided?
Amortization applies to ________________.
Which of the following is/are the important characteristic of depreciation?
Which of the following is/are not the important characteristic of depreciation?
Under which of the following method depreciation is charged uniformly?
Which of the following is/are not the objectives of providing depreciation?
Which of the following statements is/are false?
(I) The term 'depreciation', 'depletion' and 'amortization' convey the same meaning.
(II) Provision For Depreciation A/c debited when Provision For Depreciation A/c is created.
(III) The main purpose of charging the Profit & Loss A/c with the amount of depreciation is to spread the cost of an asset over its useful life for the purpose of income determination.
The correct option is -
Which of the following statement is incorrect?
Under which of the following method depreciation charged declines?
Under which of the following method depreciation is not charged uniformity?
Which of the following is odd one?
Which of the following method is applicable in case of wasting assets, i.e.,mines, quarries, oil well etc.?
N Ltd. purchased a machinery on April 1, 2010 for Rs 6,00,000. It is estimated that the machinery will have a useful life of 5 years after which it will have no salvage value. If the company follows sum of year digit method of depredation, the amount of depreciation charged during the year 2014-2015 was ____________.
Depreciation written off is an example of ________.
Under which schedule is the depreciation rate mentioned?
Amortization refers to writing off:
Charging a period for the proportionate cost of an Intangible asset is termed as:
The term "___________" is used for the process of writing down long term investment in intangible.
____________ is/are subject to amortization rather than depreciation.
In case of mineral resources __________.
Madan Engineers Ltd. purchased a new office equipment on $1$st January for Rs. $50,000$ on lease basis. The company intends to provide for renewal of lease at the end of $5$ years by setting up depreciation fund which may be invested outside the business which will yield interest at $5\%$. Sinking fund table shows Rs. $0.2309$ invested every year will provide Re. $1$ at the end of $5$ years at $5\%$ interest. How much should be transferred to depreciation fund A/c every year in order to provide for renewal of the plant at the end of $5$ years.
What amount should be transferred annually to depreciation fund a/c if the cost of the plant is Rs. $600000$, if its is to be written off over $4$ years if sinking fund table shows Rs. $0.23549$ invested annually at $4\%$ for yr amount to Rs. $1.0$.
Depletion method is used in all except __________.
An asset is purchased for Rs. $50,000$ on $1$st January. The life of the machine is estimated to be $5$ years. It is decided to provide depreciation under annuity method by charging $5\%$ interest. The annual depreciation will be ____________.
Cost of machine $Rs. 1,00,000$ scrap value $Rs. 10,000$; life $4$ years. What will be the amount of depreciation according to sum of years digit method in the first year?