Which of the following is/are the important characteristic of depreciation?
P. Depreciation is permanent, continuous and gradual increase in the value of a fixed asset.
Q. Depreciation is appropriation of profit.
R. Depreciation is always computed in a systematic and rational manner.
Select the correct answer from the options given below:

Q & R only

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P & R only

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R only

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P & Q only

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Solution

The correct option is C R only
Depreciation refers to two aspects of the same concept: first, the actual This is usually done in a rational and systematic manner. Since double-declining-balance depreciation does not always depreciate an asset fully. Under this method, the annual depreciation is determined by multiplying.

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Similar questions

Q. Which of the following are applicable to sinking fund method of depreciation?
I. Periodic depreciation is smaller than the assets, actual annual depreciation cost.
II. Amount of interest constantly declines due to assets, reducing balances.
III. Annual net incidence on profit and loss account remains constant due to incorporation of only fixed depreciation.
IV. Periodic depreciation is recorded through the assets account.
Select the correct answer using the codes given:

Q. Depreciation is charged only on fixed asset.

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.

Q. Depreciation is a measure of the wearing out, consumption or other loss of value of a depreciable asset arising from -
I. Use
II. Efflux of time
III. Obsolescence through technology and market changes
Select the correct answer from the options given below:

The only vehicle owned by a company is reported at its cost of Rs. 50,000 in the Motor Vehicle account, while the depreciation on the vehicle written off in each of the three years of use is reported in an Accumulated depreciation account at Rs. 25,000.

Which of the following statements is incorrect regarding when the whole of Rs. 25,000 need to be transferred away from the Accumulated depreciation account.

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