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Analysing Comparative Statement of Profit and Loss

The normal ba...

Question

The normal balance in the accumulated depreciation A/c is equal to the __________ .

A

cost of the asset

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B

depreciation to be provided each year

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C

total depreciation provided upto date

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D

depreciated value of the asset

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Solution

The correct option is C total depreciation provided upto date
Accumulated depreciation is the total depreciation for a fixed asset that has charged. Depreciation account is an asset account with a credit balance (also .the depreciation calculation for a fixed asset from its acquisition date to its use.

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Similar questions

Q. State whether the following Statements are True or False

1. There is need to provide depreciation if it is maintained with care.
2. Depreciation cannot be provided in case of loss in a financial year.
3. A Specific reserve can be created for any purpose.
4. Capital Reserves are not freely distributed as profits.
5. Under the written down value method depreciation is calculated on the original cost of an asset.
6. Depreciation is the process of valuation of asset.
7. Depreciation is a non-cash expense.
8. Secret reserves are disclosed in Balance Sheet.
9. General reserves is created to meet contingency liability.
10. Depreciation is charged only on fixed asset.

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A company has to disclose depreciation provided on fixed assets and amortization of intangible assets under ___

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. The company charges

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