Depreciation
Trending Questions
What is meant by 'window dressing' in accounting?
Briefly explain the limitations of Accounting.
Explain the concept of depreciation. What is the need for charging depreciation and what are the causes of depreciation?
What Is Compound Journal Entry Give An Example.
Depreciation arises because of …………..
Wear & Tear
Increase in value of asset
Increase in the value of liability
Decrease in capital
- valuation of asset
- allocation of cost
- both valuation of asset and allocation of cost
- None of these
What Are the Limitations of the Law of Variable Proportion?
Explain in brief any four limitations of accounting.
- Fixed Assets
- Tangible Assets
- Intangible Assets
- All of the above
Depreciation is a process of:
Valuation
Cost Allocation
Pricing
Justification
Which of the following accounting concepts or principles require the calculation of depreciation of the fixed assets?
Prudence Concept
Accrual Concept
Consistency Concept
Matching Concept
Depreciation is charged on
Current Assets
Intangible Assets
Fixed Assets
Current liability
Is a Computer a Fixed Asset?
Depreciation is decline in the value of assets due to:
Wear & tear
Passage of time
Obsolescence
All the above
As per the accrual concept of accounting, any financial or business transaction should be recorded:
when profit is computed
when the balance sheet is prepared
when cash is received or paid
when transaction occurs
Reduction in the book value of an asset over a period of time is called-
Proportion
Appreciation
Depreciation
Depletion
- Depreciation
- Fixed Assets
- Provision for depreciation
- Profit & Loss A/C
- Residual Value
- None of these
- Scrap value
- Both a and b
Complete the following worksheet
(i) If a firm believes that some of its debtors may default, it should act on this by making sure that all possible losses are recorded in the books. This is an example of the
(ii) The fact that a business is separate and distinguishable from its owner is best exemplified by the
(iii) Everything a firm owns, it also owns out to somebody. This coincidence is explained by the
(iv) The
(v) A firm may hold stock which is heavily in demand. Consequently, the market value of this stock may be increased. Normal accounting procedure is to ignore this because of
(vi) If a firm receives an order for goods, it would not be included in the sales figure owing to
(vii) The management of a firm is remarkably incompetent, but the firm's accountants cannot take this into account while preparing the book of accounts because of
Is a computer monitor a fixed asset?
What are the causes of providing depreciation?
Use of asset
Passage of time
Obsolescence
All of the above
Which one of the following would be a fixed asset for a car dealership?
Debtors
Cash
Motor vehicles held for resale
Office equipments
What are fixed and current assets?
What is the entry for adjusting depreciation of an asset?
Depreciation A/c Dr To Asset A/c No entry
None of these
Asset A/c Dr To Depreciation A/c
The asset which is an exception from depreciation is …………
Land
ATM Machine
Computer
Furniture
What is 'Depreciation'?
Enumerate the steps to ascertain the correct cash book balance.
What does COGS stand for in accounting?
If a company revises the estimated useful life of one of its assets being depreciated, the company will need to reissue its earlier financial statements as the earlier depreciation was incorrect & will have to prepare all its books of accounts again.
True
Can't say
None of the above
False
- At original cost
- At original cost / less depreciation
- At realizable value
- At market value