The main objective of depreciation is
MCQs on Depreciation

Quiz
•
Business
•
University
•
Hard
Babu Didde
Used 2+ times
FREE Resource
10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
5 sec • 2 pts
To show the previous profit
To calculate net profit
To reduce tax
To satisfy the tax department
2.
MULTIPLE CHOICE QUESTION
5 sec • 2 pts
Depreciation is generated due to
Increase in the value of liability
Decrease in capital
Wear and tear
Decrease in the value of assets
3.
MULTIPLE CHOICE QUESTION
5 sec • 2 pts
What is the purpose of making a provision for depreciation in the accounts?
To charge the cost of fixed assets against profits
To show the current market value of fixed asset
To make cash available to replace fixed assets
To make cash available to replace fixed assets
4.
MULTIPLE CHOICE QUESTION
5 sec • 2 pts
Total amount of depreciation of an asset cannot exceed its
Depreciable value
Scrap value
Market value
None of these
5.
MULTIPLE CHOICE QUESTION
5 sec • 2 pts
According to fixed instalment method, the depreciation is calculated on
Balance amount
Original cost
Scrap value
None of them
6.
MULTIPLE CHOICE QUESTION
5 sec • 2 pts
Salvage value means
(a) Definite sale price of the asset
(b) Cash to be received when life of the asset ends
(c) Cash to be paid when asset is disposed off
(d) Estimated disposal value
7.
MULTIPLE CHOICE QUESTION
5 sec • 2 pts
Depreciation is calculated under diminishing balance method, based on
(a) Original value
(b) Book value
(c) Scrap value
(d) None of them
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