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
Deprecation amount + Residential value of a fixed asset =
  • A
    Accumulated depreciation
  • B
    Future economic benefits of a fixed asset
  • C
    Cost of the fixed asset
    Correct
  • D
    Depreciation expenses
2
XYZ firm has imported a machine from abroad, which of the following is not the element of machine’s cost
  • A
    Refundable tax
    Correct
  • B
    Import duty
  • C
    Purchase price of a machine
  • D
    None
3
Name the reserve which has been created out of profit which have been earned in the normal course from day to day activities of the business concern
  • A
    Revenue Reserve
    Correct
  • B
    Capital Reserve
  • C
    Specific reserve
  • D
    General reserve
4
To whom does the reserve belongs
  • A
    Proprietor
    Correct
  • B
    Debtor
  • C
    Seller
  • D
    Creditors
5
Which of the following fixed asset is not depreciated in the ordinary circumstance?
  • A
    Building
  • B
    Plant and Machinery
  • C
    Equipments
  • D
    Land
    Correct
6
In the calculation of depreciation all of the following items are actually estimates except
  • A
    Historical cost
    Correct
  • B
    Salvage value
  • C
    Residual value
  • D
    Useful life
7
Which of the following accounting concepts or principles require the calculation of depreciation of the fixed assets
  • A
    Prudence concept
    Correct
  • B
    Matching concept
  • C
    Consistency Concept
  • D
    Accrual concept
8
Provisions are differ from reserves as they are
  • A
    Charge against profit.
    Correct
  • B
    Both
  • C
    Appropriation of profit.
  • D
    None
9
_______ reserve may or may not involve any receipts of cash
  • A
    General
  • B
    Capital
    Correct
  • C
    Revenue
  • D
    Specific
10
Reserves are important because they
  • A
    Meeting a future contingency
  • B
    Redeeming a long-term liability like debentures, etc.
  • C
    All of these
    Correct
  • D
    Strengthening the general financial position of the business;
11
Installation, freight and transport expenses are a part of
  • A
    Deducted cost
  • B
    Acquisition cost
    Correct
  • C
    Historical cost
  • D
    Market cost
12
Reserve created for maintaining a stable rate of dividend is termed as
  • A
    Dividend equalization fund
    Correct
  • B
    General Reserves
  • C
    Specific Reserves
  • D
    Capital Reserves
13
______ are created in business for rainy day
  • A
    Capital Reserves
  • B
    Dividend equalization fund
  • C
    General Reserve
    Correct
  • D
    Dividend equalization fund
14
Which reserve are created for specific purpose
  • A
    Dividend equalization fund
  • B
    Dividend equalization fund
  • C
    Capital Reserves
  • D
    Specific Reserve
    Correct
15
Provision is debited to ____ account
  • A
    Capital
  • B
    Profit and Loss
    Correct
  • C
    Assets
  • D
    Liability