Accounting Mcqs

Page No. 6

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


aPlant & Machinery

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bBuilding account

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cLand

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dEquipment's

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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

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bImport duty

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cDemurrage charges

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dRefundable tax

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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

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ba capital expenditure

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ca long term expense

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dan accounting period expense

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View Answer a capital expenditure

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


aBook value of a fixed asset

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bMarket value of a fixed asset

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cHistorical cost of a fixed asset

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dRecoverable amount if a fixed asset

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Depreciable amount + Residual value of a fixed asset = ?


aDepreciation expenses

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bAccumulated depreciation

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cCost of the fixed asset

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dFuture economic benefits of a fixed asset

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


aa certain figure

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ban estimate

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ca predetermined figure for all fixed assets

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dNone of the above

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View Answer an estimate

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


aAmortization

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bDepletion

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cBoth of them

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dNone of the above

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View Answer Both of them

An alternative term used for accumulated depreciation expenses?


aProvision for depreciation

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bCumulative depreciation

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cTargeted depreciation

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dDepletion

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


aAccumulated depreciation Debit and depreciation expenses Credit

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bDepreciation expenses Debit and accumulated depreciation Credit

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cCash Debit and Depreciation expenses Credit

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dDepreciation expenses Debit and Cash Credit

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How trial balance shows the accumulated depreciation?


aas a debit item

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bas a credit item

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cIt doesn't show

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dNone of the above

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View Answer as a credit item

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