In depreciation calculation the life of an asset is:

Related MCQs

• 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
• 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 the asset is sold, the provision for depreciation relating to the asset sold is transferred to:
• Cost of fixed asset minus accumulated depreciation expenses of the 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
• In calculation of depreciation, all of the following items are actually estimates except:
• In the course of preparing a company’s cash flow statement, the following figures are to be included in the calculation of net cash from operating activities: Depreciation charges Rs.9,80,000 Profit on sale of non-current assets Rs.40,000 Increase in inventories Rs.1,30,000 Decrease in receivables Rs.1,00,000 Increase in payables Rs.80,000 What will be the net effect of these items in the cash flow statement?
• When provision for depreciation account is maintained, the amount of depreciation is debited to
• Under which method of depreciation annual depreciation goes on decreasing
• Under which method of depreciation annual depreciation fluctuate with the volume of production