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Account M.C.Q (1 Marks)

Depreciation · CBSE STD 11 Commerce (CBSE - English Medium). 21 questions.

Questions

M.C.Q (1 Marks)

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21 questions · timed · auto-graded

MCQ 11 Mark
The loss on sale of an asset is debited to:
  • A
    Reserves.
  • B
    Depreciation fund.
  • ✓
    Profit and Loss Account.
  • D
    None of these.
Answer
Correct option: C.
Profit and Loss Account.
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MCQ 21 Mark
Charging depreciation is:
  • ✓
    Compulsory.
  • B
    Voluntary.
  • C
    Dependent on the condition of assets.
  • D
    None of these.
Answer
Correct option: A.
Compulsory.
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MCQ 31 Mark
Depreciation is charged on:
  • A
    Current Assets.
  • ✓
    Fixed Assets.
  • C
    Total Assets.
  • D
    Fictitious Assets.
Answer
Correct option: B.
Fixed Assets.
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MCQ 41 Mark
Depreciation is a process of:
  • A
    Valuation of asset.
  • ✓
    Allocation of cost.
  • C
    Both of valuation of asset and allocation of cost.
  • D
    None of the above.
Answer
Correct option: B.
Allocation of cost.
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MCQ 51 Mark
Amount of depreciation charged under diminishing balance method remains:
  • A
    Increasing.
  • ✓
    Decreasing.
  • C
    Fixed.
  • D
    Fluctuating.
Answer
Correct option: B.
Decreasing.
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MCQ 61 Mark
Under diminishing balance method, depreciation is charged on:
  • A
    Original Cost.
  • ✓
    Written Down Value.
  • C
    Cost of Production.
  • D
    Net Profits.
Answer
Correct option: B.
Written Down Value.
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MCQ 71 Mark
An asset was purchased for $₹ 5,00,000$ and as per reducing balance method, $20\%$ deprecation is charged each year. What is the value of assets at the end of three years?
  • A
    $₹ 3,50,000$
  • ✓
    $₹ 2,56,000$
  • C
    $₹ 4,00,000$
  • D
    $₹ 3,20,000$
Answer
Correct option: B.
$₹ 2,56,000$
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MCQ 81 Mark
Which one is not the cause of depreciation?
  • A
    Efflux of time.
  • ✓
    Price fluctuation.
  • C
    Obsolescence.
  • D
    Natural wear and tear.
Answer
Correct option: B.
Price fluctuation.
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MCQ 91 Mark
A machinery which costs $₹ 2,00,000$ is depreciated at $25\%$ per year using the Written Down Value Method. At the end of three years, it will have a net book value of:
  • A
    $₹ 1,50,000$
  • ✓
    $₹ 84,375$
  • C
    $₹ 1,12,500$
  • D
    $₹ 1,00,000$
Answer
Correct option: B.
$₹ 84,375$
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MCQ 101 Mark
Diminishing Value Method means a method by which:
  • A
    The rate of Depreciation falls year by year.
  • ✓
    The amount on which Depreciation is calculated falls year by year.
  • C
    The rate as well as the amount to which it is applied fall year by year.
  • D
    None of the above.
Answer
Correct option: B.
The amount on which Depreciation is calculated falls year by year.
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MCQ 111 Mark
The amount of Depreciation charged on machinery is debited to:
  • ✓
    Depreciation Account.
  • B
    Machinery Account.
  • C
    Provision for Depreciation Account.
  • D
    None of these.
Answer
Correct option: A.
Depreciation Account.
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MCQ 121 Mark
Which of the following is not a cause of depreciation:
  • A
    Wear and Tear.
  • B
    Passage of Time.
  • ✓
    Fall in the Market Value.
  • D
    Accident.
Answer
Correct option: C.
Fall in the Market Value.
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MCQ 131 Mark
Depreciation is:
  • ✓
    Revenue Expenditure.
  • B
    Capital Expenditure.
  • C
    Deferred Revenue Expenditure.
  • D
    None of these.
Answer
Correct option: A.
Revenue Expenditure.
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MCQ 141 Mark
The term amortisation is used to write off:
  • A
    Fixed Assets.
  • ✓
    Intangible Assets.
  • C
    Tangible Assets.
  • D
    Wasting Assets.
Answer
Correct option: B.
Intangible Assets.
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MCQ 151 Mark
Which of the following factors affect the amount of depreciation?
  • A
    Cost of the Asset.
  • B
    Expected Useful Life of the Asset.
  • C
    Expected residual value of the Asset.
  • ✓
    All of these.
Answer
Correct option: D.
All of these.
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MCQ 161 Mark
Depreciation on fixed assets is:
  • A
    Cash transaction.
  • ✓
    Internal transaction.
  • C
    External transaction.
  • D
    No transaction at all.
Answer
Correct option: B.
Internal transaction.
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MCQ 171 Mark
The term depreciation is used to write off:
  • A
    Fixed Assets.
  • ✓
    Tangible Fixed Assets other than Land.
  • C
    Intangible Assets.
  • D
    Wasting Assets.
Answer
Correct option: B.
Tangible Fixed Assets other than Land.
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MCQ 181 Mark
Depreciation arises because of:
  • ✓
    Wear and tear.
  • B
    Inflation.
  • C
    Fall in the value of the asset.
  • D
    None of these.
Answer
Correct option: A.
Wear and tear.
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MCQ 191 Mark
Straight Line Method of Depreciation is that method under which:
  • A
    Depreciation is charged at a fixed percentage on the book value of the asset.
  • ✓
    Depreciation is charged at a fixed percentage on the original cost of the asset.
  • C
    Depreciation is charged on original cost of asset but the depreciation rate changes.
  • D
    None of the above.
Answer
Correct option: B.
Depreciation is charged at a fixed percentage on the original cost of the asset.
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MCQ 201 Mark
Depreciation is a:
  • A
    Reserve.
  • ✓
    Provision.
  • C
    Both $(a)$ and $(b).$
  • D
    None of these.
Answer
Correct option: B.
Provision.
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MCQ 211 Mark
A machine is purchased on $1st$ April, $2018$ for $₹ 80,000$. Expenses incurred on its installation is $₹ 20,000$. The residual value at the end of its expected useful life of $4$ years is estimated at $₹ 10,000.$ The amount of depreciation under Straight Line Method, for the year ended on $31^{st}$ March, $2019$ will be:
  • ✓
    $₹ 22,500$
  • B
    $₹ 20,000$
  • C
    $₹ 17,500$
  • D
    $₹ 13,125$
Answer
Correct option: A.
$₹ 22,500$
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M.C.Q (1 Marks) - Account STD 11 Commerce Questions - Vidyadip