Quiz in lieu of Internal Assessment 1

Depreciation is charged on:

• Tangible Fixed Assets

• Intangible Fixed Assets

• Both Tangible and Intangible Assets

• Both Current and Fixed Assets

The cause of depreciation is:

• Wear and Tear

• Obsolescence

• Both of these

• None of these

Another term for Accumulated Depreciation is:

• Targeted Depreciation

• Cumulated Depreciation

• Provision for Depreciation

• Depletion

The original cost of an asset is Rs. 1,20,000 and its Scrap Value is likely to be Rs. 20,000 after its estimated useful life of 10 years. The annual depreciation written off will be Rs. _____.

• 12000

• 10000

• 2000

• 14000

The Accounting Standard concerned with Depreciation is:

• AS 26

• AS 9

• AS 10

• AS 6

Which method of Depreciation has been used here?

• Provision for Depreciation method

• Straight Line Method

• Written Down Value Method

• None of the above

A company purchased machinery on December 31, 2017 for Rs.60,000. Installation charges were Rs. 25,000 and carriage was Rs.15,000. Depreciation provided at 10% p.a. under Straight Line Method. The total Depreciation till March 31, 2019 is Rs.______ .

• 6000

• 12000

• 12500

• 6250

____________ is a gradual and systematic writing off of intangible assets.

• Depreciation

• Amortization

• Depletion

• Reduction

Depreciation Expense is sometimes referred to as a noncash expense.

• True

• False