Under estimation of useful life of a depreciable asset will lead to —

Related MCQs

• Tick the correct match 1. Current Asset 1. Depreciation 2. Nominal A/c 2. Land 3. Non Depreciable Asset 3. Insurance A/c 4. Non Cash Expense 4. Prepaid Rent A/c
• If original cost of an asset is rs. 60000 and its scrap value is Rs. 10000, its depreciable cost is
• Depreciable amount plus residual value of a fixed asset:
• In which of the following methods, the cost of the asset is spread over in equal proportion during its useful economic life?
• The estimate about useful life of a fixed asset:
• Value of an asset is 9 lakh, scrap value is 125000, estimated life is 10 years the cost of depreciation under straight-line method will be
• An Investment in one asset A/c may lead to –
• When an asset is acquired on hire purchase system, the asset account is debited with _______ of the assets in the books of the hire purchaser.
• Which of the following statements is true with regard to written down value method of depreciation? i. The rate at which the asset is written off reduces year after year ii. The amount of depreciation provided reduces from year to year iii. The rate of depreciation as well as the amount of depreciation reduce year after year iv. The value of the asset gets reduced to zero over a period of time
• An asset was purchased for Rs.1000000 with the down payment of Rs.200000 and bills accepted for Rs.800000/-. What would be the effect on the total asset and total liabilities in the balance sheet?