Q. Which of the following methods of depreciation is not recognized by Income Tax Law?
✅ Correct Answer: (A)
Straight line Method
Depreciation, Provisions and Reserves MCQs with answers
Dear candidates you will find MCQ questions of 11th Class - Accountancy | Chapter: Depreciation, Provisions and Reserves here. Learn these questions and prepare yourself for coming examinations. You can check the right answer of any question by clicking the option or by clicking view answer button.
All subjects and chapters of 11th Class are listed below. You can select any subject and chapter below to learn mcq questions of that chapter and subject.
Q. Asset Disposal A/c is prepared when :
✅ Correct Answer: (A)
Provision for Depreciation A/c is prepared
Q. Which of the following is the example of Capital Reserve?
✅ Correct Answer: (C)
Premium Received on issue of shares or debentures
Q. Which of the following is the example of Revenue Reserve?
✅ Correct Answer: (D)
Investment Fluctuation Fund
Q. According to Companies Act, 1956 Secret Reserves can be created by:
✅ Correct Answer: (B)
Banking and insurance companies
Q. The loss on sale of an asset is debited to:
✅ Correct Answer: (A)
Profit and Loss Account
Q. At the end of the year, Depreciation Account is transferred to :
✅ Correct Answer: (D)
Profit & Loss Account
Q. Under Reducing Balance Method, depreciation to be charged :
✅ Correct Answer: (D)
None of these
Q. The depreciation charged on an asset will be credited to :
✅ Correct Answer: (B)
Asset A/c
Q. Every fixed asset loses its value due to use or other reasons. This decline in the value of asset is known as
✅ Correct Answer: (C)
Depreciation
Q. Following are the causes of Depreciation except
✅ Correct Answer: (A)
Natural resources
Q. An alternative term used for accumulated depreciation expenses?
✅ Correct Answer: (A)
Provision for depreciation
Q. Depreciation charged under diminishing method
✅ Correct Answer: (B)
Decrease every year
Q. Which of the following is not a type of reserve
✅ Correct Answer: (A)
Provision for bad debt
Q. What is the rate of charging depreciation under diminishing method?
✅ Correct Answer: (D)
Not fixed
Q. Under which depreciation method the amount of depreciation expenses remains same throughout the useful life of a fixed asset
✅ Correct Answer: (A)
Straight line method
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