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Total Assets to Debt Ratio

Depreciation ...

Question

Depreciation is deductible cost for ____ purpose.

A

Expense

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B

Income

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C

Tax

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D

GST

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Solution

The correct option is C Tax
Depreciation allowance is an amount of annual allowance to recover the cost of property that has declined due to wear and tear, deterioration or obsolescence. For tax purpose, a deduction can be claimed for depreciation on the most tangible property (except land) such as buildings, machinery, vehicles, etc.

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Similar questions

Q. Which of the following statements is/are false?
I. The term 'depreciation', 'depletion' and 'amortization' convey the same meaning.
II. Provision for depreciation a/c is debited when provision for depreciation a/c is created.
III. The main purpose of charging the profits and loss a/c with the amount of depreciation is to spread the cost of an asset over useful life for the purpose of income determination.

Q. Which of the following statements is/are false?
(I) The term 'depreciation', 'depletion' and 'amortization' convey the same meaning.
(II) Provision For Depreciation A/c debited when Provision For Depreciation A/c is created.
(III) The main purpose of charging the Profit & Loss A/c with the amount of depreciation is to spread the cost of an asset over its useful life for the purpose of income determination.
The correct option is -

Q. ____________ is not included in the Cost of the assets for the purpose of depreciation.

Q. Which of the following statements is/are false?
I. The term 'depreciation', 'depletion' and 'amortization' have same meaning
II. Provision for depreciation A/c is debited when provision for depreciation is created.
III. The main purpose of charging the Profit and Loss A/c with the amount of depreciated is to spread the cost of an asset over its useful life.

Q. Give journal entries:
For deducting depreciation amount from the cost of the asset.

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