Depreciation Provisions And Reserves CBSE Questions & Answers

Depreciation Provisions And Reserves

This is Accountancy Class 11 Depreciation Provisions and Reserves CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.

Questions & Answers

1
Every fixed asset loses its value due to use or other reasons. This decline in the value of asset is known as
  • A
    Depreciation
    Correct
  • B
    Devaluation
  • C
    Amortization
  • D
    Provisions
2
Following are the causes of Depreciation except
  • A
    Expiration of legal rights.
  • B
    Wear and tear due to use or passage of time.
  • C
    normal factors
    Correct
  • D
    Obsolescence.
3
The term depletion is used for :
  • A
    Liabilities
  • B
    Natural resources
    Correct
  • C
    Intangible assets
  • D
    Fixed asset
4
Under straight line method depreciation is calculated on _____value of asset
  • A
    Cost less scrap
  • B
    Market
  • C
    Written down
  • D
    Original
    Correct
5
Depreciation charged under diminishing method
  • A
    Increase in one year and decrease another year
  • B
    Increase every year
  • C
    Same every year
  • D
    Decrease every year
    Correct
6
Which of the following is not a type of reserve
  • A
    Provision for bad debt
    Correct
  • B
    General reserve;
  • C
    Workmen compensation fund
  • D
    Retained earnings
7
What is depreciation?
  • A
    Portion of a fixed assets cost consumed during the current accounting
  • B
    Cost of fixed asset’s repair
  • C
    Cost of using a fixed asset
    Correct
  • D
    The value of asset
8
An alternative term used for accumulated depreciation expenses?
  • A
    Depletion
  • B
    Targeted depreciation
  • C
    Provision for depreciation
    Correct
  • D
    Cumulative depreciation
9
What is the rate of charging depreciation under diminishing method?
  • A
    10% p.a.
  • B
    Not fixed
    Correct
  • C
    12% p.a.
  • D
    15% p.a.
10
In depreciation calculation, the useful life of a fixed asset is:
  • A
    None of these
  • B
    An estimate
  • C
    A predetermined figure for all fixed assets
  • D
    A certain figure
    Correct
11
Cost of a fixed asset – Accumulated depreciation expenses of the fixed asset=?
  • A
    Recoverable amount of a fixed asset
  • B
    Market value of fixed asset
  • C
    Book value of fixed asset
    Correct
  • D
    Historical cost of a fixed asset
12
An increase in the value of fixed asset is referred to as:
  • A
    Reserve depreciation
  • B
    Market capitalization
  • C
    Appreciation
  • D
    Purchase of Asset
    Correct
13
The term _____ is generally used for the depreciation of natural resources
  • A
    Disposal value
  • B
    Appreciation
  • C
    Depletion
    Correct
  • D
    Amortization
14
When an asset is disposed off the procedure will be recorded in a separate account called :
  • A
    Sales account
  • B
    Asset disposal account
    Correct
  • C
    Reserves account
  • D
    Profit account
15
Which journal entry to be passed for transferring the cost price of the asset sold to the asset disposal account
  • A
    Option A
  • B
    Option B
    Correct
  • C
    Option C
  • D
    Option D