Accounting Mcqs

Page No. 6

Which of the following foxed assets is not depreciated in the ordinary circumstances?


aPlant & Machinery


bBuilding account


cLand


dEquipment's


View Answer Land

XYZ firm has imported a machine from abroad. Which of the following is NOT the element of the machine's cost?


aPurchase price of machine


bImport duty


cDemurrage charges


dRefundable tax


View Answer Refundable tax

The purchase price of a software that will be used for more than 12 months should be regarded as


aa revenue expenditure


ba capital expenditure


ca long term expense


dan accounting period expense


View Answer a capital expenditure

Cost of a fixed asset - Accumulated depreciation expenses of the fixed asset = ?


aBook value of a fixed asset


bMarket value of a fixed asset


cHistorical cost of a fixed asset


dRecoverable amount if a fixed asset



Depreciable amount + Residual value of a fixed asset = ?


aDepreciation expenses


bAccumulated depreciation


cCost of the fixed asset


dFuture economic benefits of a fixed asset



In depreciation calculation, the useful life of a fixed asset is:


aa certain figure


ban estimate


ca predetermined figure for all fixed assets


dNone of the above


View Answer an estimate

Which of the following is/are kind of depreciation expenses?


aAmortization


bDepletion


cBoth of them


dNone of the above


View Answer Both of them

An alternative term used for accumulated depreciation expenses?


aProvision for depreciation


bCumulative depreciation


cTargeted depreciation


dDepletion



Which of the following is a double entry for deprecation expenses?


aAccumulated depreciation Debit and depreciation expenses Credit


bDepreciation expenses Debit and accumulated depreciation Credit


cCash Debit and Depreciation expenses Credit


dDepreciation expenses Debit and Cash Credit



How trial balance shows the accumulated depreciation?


aas a debit item


bas a credit item


cIt doesn't show


dNone of the above


View Answer as a credit item

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