Chapter depreciation-provisions-and-reserves: Depreciation, Provisions and Reserves MCQs | accountancy Class 11 CBSE

Chapter depreciation-provisions-and-reserves: Depreciation, Provisions and Reserves MCQs | accountancy Class 11 CBSE | ByteNotes.in

MCQ

Easy difficulty • Choose the correct option

Easy

Question 1

Objective

Depreciation is defined as a measure of wearing out, consumption or other loss of value of a depreciable asset arising from use, effluxion of time or obsolescence through technology and market change by:

Choices

ByteNotes

MCQ

Easy difficulty • Choose the correct option

Easy

Question 2

Objective

Which of the following is NOT a feature of depreciation?

Choices

ByteNotes

MCQ

Easy difficulty • Choose the correct option

Easy

Question 3

Objective

The term 'Amortisation' is used in the context of:

Choices

ByteNotes

MCQ

Easy difficulty • Choose the correct option

Easy

Question 4

Objective

A machine is purchased for ₹1,00,000. Transportation cost is ₹5,000 and installation cost is ₹10,000. The original cost of the machine is:

Choices

ByteNotes

MCQ

Easy difficulty • Choose the correct option

Easy

Question 5

Objective

Under the Straight Line Method, depreciation is calculated on:

Choices

ByteNotes

MCQ

Medium difficulty • Choose the correct option

Medium

Question 6

Objective

Under the Written Down Value method, the value of an asset:

Choices

ByteNotes

MCQ

Easy difficulty • Choose the correct option

Easy

Question 7

Objective

The Straight Line Method of depreciation is also known as:

Choices

ByteNotes

MCQ

Easy difficulty • Choose the correct option

Easy

Question 8

Objective

Which depreciation method is recognised by the Income Tax Act for tax purposes?

Choices

ByteNotes

MCQ

Easy difficulty • Choose the correct option

Easy

Question 9

Objective

Depreciable cost of an asset is calculated as:

Choices

ByteNotes

MCQ

Medium difficulty • Choose the correct option

Medium

Question 10

Objective

When Provision for Depreciation account is maintained, the fixed asset appears in the Balance Sheet at:

Choices

ByteNotes

MCQ

Medium difficulty • Choose the correct option

Medium

Question 11

Objective

A machine is purchased for ₹2,00,000. Net salvage value after 10 years is ₹20,000. Annual depreciation under SLM is:

Choices

ByteNotes

MCQ

Easy difficulty • Choose the correct option

Easy

Question 12

Objective

The cause of depreciation related to an asset becoming out-of-date due to the availability of a better type of asset is called:

Choices

ByteNotes

MCQ

Easy difficulty • Choose the correct option

Easy

Question 13

Objective

Under the Written Down Value method, depreciation amount charged each year is:

Choices

ByteNotes

MCQ

Medium difficulty • Choose the correct option

Medium

Question 14

Objective

When a fixed asset is sold at a price higher than its book value, the difference is treated as:

Choices

ByteNotes

MCQ

Easy difficulty • Choose the correct option

Easy

Question 15

Objective

Provision for Doubtful Debts is created by debiting:

Choices

ByteNotes

MCQ

Easy difficulty • Choose the correct option

Easy

Question 16

Objective

A reserve created to stabilise the rate of dividend across years is called:

Choices

ByteNotes

MCQ

Medium difficulty • Choose the correct option

Medium

Question 17

Objective

Profit on issue of shares at a premium is an example of:

Choices

ByteNotes

MCQ

Easy difficulty • Choose the correct option

Easy

Question 18

Objective

Which of the following is a correct statement about Provision?

Choices

ByteNotes

MCQ

Medium difficulty • Choose the correct option

Medium

Question 19

Objective

An Asset Disposal Account is generally prepared when:

Choices

ByteNotes

MCQ

Medium difficulty • Choose the correct option

Medium

Question 20

Objective

The Straight Line Method of depreciation is most suitable for:

Choices

ByteNotes

Premium Access

Unlock all MCQs

You are viewing 20 free MCQs from this chapter. Upgrade to Premium to unlock the remaining 20 questions.

Upgrade to Premium20 questions locked

Chapter sections

Chapter depreciation-provisions-and-reserves: Depreciation, Provisions and Reserves | MCQs

Depreciation is defined as a measure of wearing out, consumption or other loss of value of a depreciable asset arising from use, effluxion of time or obsolescence through technology and market change by:

Which of the following is NOT a feature of depreciation?

The term 'Amortisation' is used in the context of:

A machine is purchased for ₹1,00,000. Transportation cost is ₹5,000 and installation cost is ₹10,000. The original cost of the machine is:

Under the Straight Line Method, depreciation is calculated on:

Under the Written Down Value method, the value of an asset:

The Straight Line Method of depreciation is also known as:

Which depreciation method is recognised by the Income Tax Act for tax purposes?

Depreciable cost of an asset is calculated as:

When Provision for Depreciation account is maintained, the fixed asset appears in the Balance Sheet at:

A machine is purchased for ₹2,00,000. Net salvage value after 10 years is ₹20,000. Annual depreciation under SLM is:

The cause of depreciation related to an asset becoming out-of-date due to the availability of a better type of asset is called:

Under the Written Down Value method, depreciation amount charged each year is:

When a fixed asset is sold at a price higher than its book value, the difference is treated as:

Provision for Doubtful Debts is created by debiting:

A reserve created to stabilise the rate of dividend across years is called:

Profit on issue of shares at a premium is an example of:

Which of the following is a correct statement about Provision?

An Asset Disposal Account is generally prepared when:

The Straight Line Method of depreciation is most suitable for:

Unlock all MCQs

Practice in Quiz Mode