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
Depreciation is Charged on :
  • A
    Current Assets
  • B
    Fixed Tangible Assets
    Correct
  • C
    None of these
  • D
    Both Current and Fixed Assets
2
At the end of the year, Depreciation Account is transferred to :
  • A
    Balance Sheet
  • B
    Trading Account
  • C
    Profit & Loss Appropriation Account
  • D
    Profit & Loss Account
    Correct
3
Provision is created by debiting :
  • A
    Profit and Loss Account
    Correct
  • B
    None of these
  • C
    Profit and Loss Appropriation Account
  • D
    Trading Account
4
The cause of Depreciation is :
  • A
    Wear and tear
  • B
    Obsolescence
  • C
    All of these
    Correct
  • D
    Usage of Asset
5
Depreciation is a process of :
  • A
    Allocation
    Correct
  • B
    Valuation
  • C
    None of these
  • D
    Depletion
6
Under Reducing Balance Method, depreciation to be charged :
  • A
    Scrap Value
  • B
    None of these
    Correct
  • C
    Real Value
  • D
    Original value
7
The depreciation charged on an asset will be credited to :
  • A
    Depreciation A/c
  • B
    Asset A/c
    Correct
  • C
    Bank A/c
  • D
    Cash A/c
8
Which of the following methods of depreciation is not recognized by Income Tax Law?
  • A
    Straight line Method
    Correct
  • B
    None of these
  • C
    Both, Straight Line and Diminishing Balance Methods
  • D
    Diminishing Balance Method
9
Asset Disposal A/c is prepared when :
  • A
    Provision for Depreciation A/c is prepared
    Correct
  • B
    Asset A/c is prepared
  • C
    Profit & Loss A/c is prepared
  • D
    Depreciation A/c is prepared
10
Which of the following is the example of Capital Reserve?
  • A
    Workmen's Compensation Fund
  • B
    None of these
  • C
    Premium Received on issue of shares or debentures
    Correct
  • D
    General Reserve
11
Which of the following is the example of Revenue Reserve?
  • A
    Profit on Redemption of Debentures
  • B
    Profit on Revaluation of Fixed
  • C
    Investment Fluctuation Fund
    Correct
  • D
    Profit on Re-issue of forfeited shares
12
Dividend Equalisation Reserve is :
  • A
    Specific Reserve
    Correct
  • B
    None of these
  • C
    Secret Reserve
  • D
    General Reserve
13
General Reserves are shown in :
  • A
    Revaluation Account
  • B
    Profit and Loss Account
  • C
    None of these
  • D
    Balance Sheet
    Correct
14
According to Companies Act, 1956 Secret Reserves can be created by:
  • A
    Only Private Company
  • B
    Banking and insurance companies
    Correct
  • C
    Only Public Company
  • D
    Companies Registered under Companies Act
15
The loss on sale of an asset is debited to:
  • A
    Profit and Loss Account
    Correct
  • B
    Trial Balance Cr. Side
  • C
    Balance Sheet
  • D
    Trading Account