Free Printable Day 77-Dec 12-worksheet-Diploma-Depreciation methods

1.

Depreciation is best defined as:

a)

Increase in property value due to improvements

b)

Decrease in property value due to structural deterioration and use

c)

Sudden loss due to accidents only

d)

Change in land value only

2.

In the straight line method of depreciation:

a)

A constant percentage of book value is written off each year

b)

A constant amount of original cost is written off each year

c)

Depreciation is based only on sinking fund and interest

d)

Depreciation is calculated purely on market value

3.

Formula for annual depreciation in straight line method is:

a)

$D = C/n$

b)

$D = S/n$

c)

$D = (C - S)/n$

d)

$D = (C + S)/n$

4.

In the constant percentage (declining balance) method, book value after $n$ years is:

a)

$C - nD$

b)

$C(1 - D)^n$

c)

$C - S$

d)

$C(1 + D)^n$

5.

Capitalized value by rental method of valuation is given by:

a)

$\text{Capitalized value} = \text{Gross rent} \times \text{Years' purchase}$

b)

$\text{Capitalized value} = \text{Net rent} \times \text{Years' purchase}$

c)

$\text{Capitalized value} = \text{Net profit} \times \text{Years' purchase}$

d)

$\text{Capitalized value} = \text{Capital cost} - \text{Depreciation}$

6.

Mark True or False: In quantity survey method, total depreciation is worked out by detailed logical assessment of individual items, not by adopting fixed percentage of cost.

a)

True

b)

False

7.

Mark True or False: In government buildings, the usual interest allowed on cost of building for rent fixation is 12%, same as for private buildings.

a)

True

b)

False

8.

For a building with 100 years life, the fixed percentage of depreciation $r_d$ is what percent?

(a)

9.

For a 20-year life structure, the fixed percentage of depreciation $r_d$ is what percent?

(a)

10.

The record in which all works executed are measured and entered permanently is called what?

(a)

11.

A new building costs ₹1,50,000. Scrap value at the end of 80 years is ₹15,000. Using the straight line method, what is the annual depreciation D?

(a)

12.

A new building costs ₹1,50,000. Scrap value at the end of 80 years is ₹15,000. Using the straight line method, what is the book value after 20 years?

(a)

13.

Given: C = $₹1{,}50{,}000$ ; S = $₹15{,}000$ ; n = 40 years. Using the straight-line method, find the annual depreciation D.

(a)

14.

Rate of Depreciation in Declining Balance Method: A machine costs $₹50{,}000$ and is expected to have a scrap value of $₹20{,}000$ after 10 years using the constant percentage (declining balance) method. Find the annual rate of depreciation D.

(a)

15.

Match the following ;

Here,C.V means capitalized value,D means Depreciation

a)

Direct comparison of capital value

1.

C.V compared with sale price

b)

Valuation based on cost

2.

C.V=Actual cost of construction -D

c)

Rental method of valuation

3.

Capitalized value = Net rent × Y.P.

d)

Valuation based on profit

4.

Capitalized value = Net profit × Y.P.

Day 77-Dec 12-worksheet-Diploma-Depreciation methods

Total questions: 15

Worksheet time: 11mins

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