1-3with explanation 1. Which of the following is true about the straight-line method?A. Complex methodB. Cost of depreciation remains constantC. Cost of depreciation changes every yearD. Profit and Loss account debited with different amount every year2. Reduction in the book value of an asset over a period of time is called-A. AppreciationC. ProportionB. DepreciationD. Depletion3. Which among the following is Not a reason for depreciation?A. Use of assetB. Obsolescence4. It is the main object of providing depreciation.A. To calculate true profitC. Passage of timeD. Repair of an assetC. To show true financial positionD. To provide funds for replacementB. To reduce tax5. Which is excluded in straight line method of depreciation?A. Useful life of the assetB. Cost of the asset6. It refers to the estimated disposal value of an asset.A. Use valueC. Annual cost of repairD. Expected salvage valueC. Market valueB. Salvage valueD. Book value7. It is an amount which a willing buyer will pay to a willing seller for the property where each hasequal advantage and is under no compulsion to buy or sell.A. Use valueC. Market valueB. Salvage value8. The amount that the property would give if sold for junk.A. Junk valueC. Salvage valueD. Book valueB. Book valueD. Scrap value9. A type of depreciation is due to the reduction of the physical ability of an equipment or asset toproduce results.A. Physical depreciationC. Functional depreciationB. Design depreciationD. Demand depreciation10. It refers to the reduction in the demand for the function that the equipment or asset was designedto render.

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1. Which of the following is true about the straight-line method? A. Complex method B. Cost of depreciation remains constant C. Cost of depreciation changes every year D. Profit and Loss account debited with different amount every year

1. Which of the following is true about the straight-line method? A. Complex method B. Cost of depreciation remains constant C. Cost of depreciation changes every year D. Profit and Loss account debited with different amount every year

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter7: Fixed Assets, Natural Resources, And Intangible Assets

Section: Chapter Questions

Problem 7.2.2MBA

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