Depreciation on the diminishing balance method of Rs. 2000 at the rate of 10% p.a after three years will be: 2015

• Rs. 1400

• Rs. 1458

• Rs. 542

• None of these

Depreciation of an asset should not exceed the: 2015

• Original cost

• Depreciable value

• Market price

• Scrap value

Loss on the sale of machinery should be written off against: 2016

• Share premium account

• Sales account

• Depreciation fund account

• None of these

The period during which the asset will help in earning income of business is known as: 2016

• Consumed life

• Expired life

• Exhausted life

• Working life

If original cost of an asset is Rs. 10,000, rate of depreciation 10 % p.a. then the value of depreciation under diminishing balance method after third year will be: 2016

• Rs. 1000

• Rs. 900

• Rs. 700

• Rs. 810

The physical deterioration in assets due to use in business is called: 2017

• Depletion

• Obsolescence

• Wear and tear

• Accident

The value of Assets may rise or fall on account of: 2018

• Depreciation

• Depletion

• Fluctuation

• Amortization

In straight line method, depreciation is calculated on: 2018

• Book value

• Market value

• Scrap value

• Original cost

Original cost of machinery Rs. 5,500, scrap value Rs. 500, the useful life of machinery 10 years, then the annual value of deprecation will be: 2018

• Rs. 500

• Rs. 550

• Rs. 1000

• Rs. 1500

Depreciation arises because of; 2019

• Fall in the market value of an asset

• Physical wear and tear

• Fall in the value of money

• Increase in the value of money