QUIZ in DEPRECIATION

Decrease in value of an due to wear and tear, obsolescence, effluxion of time is called as

• Asset

• Cash

• Depreciation

• Profit

What is the term used to describe the increase in value of an asset over time?

• Depreciation

• Appreciation

• Liability

• Expense

Under which method, depreciation will not change for over a period of time?

• Diminishing Balance Method

• Fixed Instalment Method

• Depletion Method

• Annuity Method

Under which method depreciation goes on decreasing year by year

• Fixed Instalment method

• Depletion method

• Diminishing Balance Method

• Annuity Method

Which method of depreciation is used for mines, quarries where the material goes on decreasing?

• Annuity Method

• Straight Line Method

• Diminishing Balance Method

• Depletion Method

The amount of depreciation under Annuity method is

• Increases every year

• Decreases every year

• Fixed every year

• Fluctuates every year

The formula to find out annual depreciation is

• Cost of the asset / Estimated Life of the asset x 100

• Cost of the asset + Installation charges - scrap value / Estimated life of the asset

• Estimated life of the asset / Cost of the asset

• None of the above

Formula to find out rate of depreciation

• Annual depreciation / Cost of the asset x 100

• Cost of the asset / Annual depreciation x 100

• Annual depreciation / Cost of the asset

• None of the above

Main causes of depreciation are

• tear and wear

• Obsolescence

• Effluxion of time

• All the above

Depreciation is charged on which kind of assets?

• Fixed assets

• Current Assets

• Both type of assets

• None of the above