Civil Engineering MCQs

Page No. 61

What are the common methods of computing depletion charge ?


aRational method and irrational method


bConservative method and conventional method


c Unit method and percentage method


dDiscrete method and depletion allowance method



What is defined as the reduction of the value of certain natural resources such as mines, oil, timber, quarries, etc. due to the gradual extraction of its contents ?


aDepletion


bInflation


cDepreciation


dDeflation


View Answer Depletion

The functional depreciation is sometimes called ____________________?


aDemand depreciation


bAdolescence


cLife depreciation


dFailure depreciation


View Answer Adolescence

What type of depreciation is due to the reduction of the physical ability of an equipment or asset to produce results ?


aFunctional depreciation


bDesign depreciation


cPhysical depreciation


dDemand depreciation


View Answer Physical depreciation

What type of depreciation is due to the reduction in the demand for the function that the equipment or asset was designed to render ?


a Functional depreciation


bDesign depreciation


cPhysical depreciation


dDemand depreciation



The declining balance method is also known as ____________________?


aDouble percentage method


bConstant percentage method


cModified sinking fund method


dModified SYD method



In what method of computing depreciation where it assumes that the annual cost of depreciation is a fixed percentage of the book value at the beginning of the year ?


aStraight line method


b Sinking fund method


cSum-of-year digit method


d Declining balance method



In what method of computing depreciation where it assumes that a sinking fund is established in which funds will accumulate for replacement purposes ?


aStraight line method


bSinking fund method


cSum-of-year digit method


dDeclining balance method


View Answer Sinking fund method

In what method of computing depreciation where it assumes that the loss in value is directly proportional to the age of the equipment or asset ?


aStraight line method


bSinking fund method


cSum-of-year digit method


dDeclining balance method


View Answer Straight line method

What is defined as the reduction or fall of the value of an asset due to constant use and passage of time ?


aDepletion


bInflation


cDepreciation


dDeflation


View Answer Depreciation

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