Fundamentals Of Accounting - Fundamentals Of Accounting Section 2

Avatto > > CMA Foundation > > PRACTICE QUESTIONS > > Fundamentals Of Accounting > > Fundamentals Of Accounting Section 2

1. Cost of the asset minus scrap value/ Life of the asset is the formula of

A
Diminishing balance method
B
Annuity method
C
Straight-line method
D
The sum of the digits method

Answer
Comment

Option : C
Explanation :

Cancel reply

Your email address will not be published. Required fields are marked *

Report

Name

Website

Save my name, email, and website in this browser for the next time I comment.

Cancel reply

Your email address will not be published. Required fields are marked *

Comment

Name

Website

Save my name, email, and website in this browser for the next time I comment.

2. The Diminishing balance method means a method by which-

A
The rate of depreciation falls year by year
B
The amount on which depreciation is calculated falls year by year
C
The rate and amount which is applied falls year by year
D
None of the above

Answer
Comment

Option : B
Explanation :

Cancel reply

Your email address will not be published. Required fields are marked *

Report

Name

Website

Save my name, email, and website in this browser for the next time I comment.

Cancel reply

Your email address will not be published. Required fields are marked *

Comment

Name

Website

Save my name, email, and website in this browser for the next time I comment.

3. Which among the following is false about Diminishing balance method-

A
the amount of depreciation is high in the initial years
B
Depreciation is calculated on the original cost of the asset
C
the value of the asset cannot be reduced to zero
D
Cost of depreciation remains constant

Answer
Comment

Option : D
Explanation :

Cancel reply

Your email address will not be published. Required fields are marked *

Report

Name

Website

Save my name, email, and website in this browser for the next time I comment.

Cancel reply

Your email address will not be published. Required fields are marked *

Comment

Name

Website

Save my name, email, and website in this browser for the next time I comment.

4. Which of the following accounting concepts or principles require the calculation of depreciation of the fixed assets?

A
Prudence concept
B
Accrual concept
C
Consistency concept
D
Matching concept

Answer
Comment

Option : D
Explanation :

Cancel reply

Your email address will not be published. Required fields are marked *

Report

Name

Website

Save my name, email, and website in this browser for the next time I comment.

Cancel reply

Your email address will not be published. Required fields are marked *

Comment

Name

Website

Save my name, email, and website in this browser for the next time I comment.

5. Depreciation is an

A
Income
B
Expense
C
Asset
D
Liability

Answer
Comment

Option : B
Explanation :

Cancel reply

Your email address will not be published. Required fields are marked *

Report

Name

Website

Save my name, email, and website in this browser for the next time I comment.

Cancel reply

Your email address will not be published. Required fields are marked *

Comment

Name

Website

Save my name, email, and website in this browser for the next time I comment.

Page 1 of 1212 3 4 5...10...»Last »

dsdwgsfgsg