Depreciation
Commerce ⇒ Accountancy
Depreciation starts at 11 and continues till grade 12.
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See sample questions for grade 11
Explain the difference between depreciation and amortization.
Explain the impact of depreciation on profit.
Explain the term 'obsolescence' as a cause of depreciation.
State any two causes of depreciation.
A company charges depreciation at 15% per annum on the Written Down Value Method. If the book value of the asset at the beginning of the year is Rs. 40,000, what will be the depreciation for the year?
A company purchased a machine for Rs. 80,000. The estimated useful life is 8 years and the residual value is Rs. 8,000. Calculate the annual depreciation using the Straight Line Method.
A company purchased equipment for Rs. 50,000. The depreciation rate is 10% per annum under the Written Down Value Method. Calculate depreciation for the first year.
A machine costing Rs. 1,00,000 has a useful life of 10 years and an estimated residual value of Rs. 10,000. Calculate the annual depreciation using the Straight Line Method.
Depreciation is charged to which account? (1) Asset Account, (2) Depreciation Account, (3) Profit and Loss Account, (4) Capital Account
Depreciation is shown on which side of the Profit and Loss Account? (1) Debit, (2) Credit, (3) Both, (4) None
Under which method does the amount of depreciation decrease every year? (1) Straight Line Method, (2) Reducing Balance Method, (3) Annuity Method, (4) Depletion Method
Which accounting principle requires the charging of depreciation? (1) Consistency, (2) Matching, (3) Conservatism, (4) Materiality
Depreciation is calculated on the ________ value of the asset under the Written Down Value Method.
Depreciation is charged on ________ assets.
Fill in the blank: Depreciation is a ________ loss.
Fill in the blank: Depreciation is a process of ________ and not of valuation.
State whether the following statement is True or False: Depreciation is charged to comply with the matching principle of accounting.
True or False: Depreciation affects the cash flow of a business.
True or False: Depreciation is a non-cash expense.
True or False: Depreciation is charged on current assets.
