CA Foundation Exam > CA Foundation Notes > Principles and Practice of Accounting > MCQ - Depreciation Accounting - 2
MCQ - Depreciation Accounting - 2 | Principles and Practice of Accounting - CA Foundation PDF Download
| Download, print and study this document offline |
Please wait while the PDF view is loading
Page 1 CPT Section A: Fundamentals of Accounting Chapter-5 Part 5: Miscellaneous Concepts of Depreciation CA. Poonam Patni Depreciation Accounting Page 2 CPT Section A: Fundamentals of Accounting Chapter-5 Part 5: Miscellaneous Concepts of Depreciation CA. Poonam Patni Depreciation Accounting Page 3 CPT Section A: Fundamentals of Accounting Chapter-5 Part 5: Miscellaneous Concepts of Depreciation CA. Poonam Patni Depreciation Accounting MCQ1: XYZ Ltd. Purchased a machine for Rs. 1,20,000 on 01.01.2012. Installation expenses were Rs. 10,000. Life of the asset is 5 years. Residual value is Rs. 2,000. Depreciation is charged as per SLM @ 10%. What is the amount of annual Depreciation. a) Rs.13,000 b) Rs. 17,000 c) Rs. 21,000 d) Rs. 25,000 =1,20,000 + 10,000 =1,30,000 X 10% = 13,000 Page 4 CPT Section A: Fundamentals of Accounting Chapter-5 Part 5: Miscellaneous Concepts of Depreciation CA. Poonam Patni Depreciation Accounting MCQ1: XYZ Ltd. Purchased a machine for Rs. 1,20,000 on 01.01.2012. Installation expenses were Rs. 10,000. Life of the asset is 5 years. Residual value is Rs. 2,000. Depreciation is charged as per SLM @ 10%. What is the amount of annual Depreciation. a) Rs.13,000 b) Rs. 17,000 c) Rs. 21,000 d) Rs. 25,000 =1,20,000 + 10,000 =1,30,000 X 10% = 13,000 MCQ2: Which of the following is not correct in respect to fixed asset. a) They are acquired for using them in the conduct of business operations. b) They are not meant for resale to earn profit. c) They can easily be converted into cash. d) Depreciation at specified rates is to be charged on most of the fixed asset. Page 5 CPT Section A: Fundamentals of Accounting Chapter-5 Part 5: Miscellaneous Concepts of Depreciation CA. Poonam Patni Depreciation Accounting MCQ1: XYZ Ltd. Purchased a machine for Rs. 1,20,000 on 01.01.2012. Installation expenses were Rs. 10,000. Life of the asset is 5 years. Residual value is Rs. 2,000. Depreciation is charged as per SLM @ 10%. What is the amount of annual Depreciation. a) Rs.13,000 b) Rs. 17,000 c) Rs. 21,000 d) Rs. 25,000 =1,20,000 + 10,000 =1,30,000 X 10% = 13,000 MCQ2: Which of the following is not correct in respect to fixed asset. a) They are acquired for using them in the conduct of business operations. b) They are not meant for resale to earn profit. c) They can easily be converted into cash. d) Depreciation at specified rates is to be charged on most of the fixed asset. MCQ 3: Which of the following expenses is not included in the acquisition cost of a plant & equipment.Read More
|
68 videos|160 docs|83 tests
|
FAQs on MCQ - Depreciation Accounting - 2 - Principles and Practice of Accounting - CA Foundation
| 1. What is depreciation accounting? |  |
Ans. Depreciation accounting refers to the process of allocating the cost of an asset over its useful life. It is a systematic way of recognizing and recording the decrease in value of an asset due to wear and tear, obsolescence, or any other factors. Depreciation is important for accurately reflecting the true value of assets in financial statements.
| 2. How is depreciation calculated? | |
Ans. Depreciation can be calculated using various methods such as straight-line method, reducing balance method, or units of production method. The most commonly used method is the straight-line method, where depreciation is evenly spread over the useful life of the asset. To calculate depreciation using the straight-line method, divide the cost of the asset by its useful life.
| 3. What is the purpose of depreciation accounting? | |
Ans. The purpose of depreciation accounting is to properly match the cost of an asset with the revenue it generates over its useful life. By allocating the cost of an asset over its useful life, depreciation helps in determining the true profitability and financial position of a business. It also ensures that assets are not overstated on the balance sheet.
| 4. Can depreciation be reversed? | |
Ans. Depreciation is a non-reversible process. Once an asset's value is reduced through depreciation, it cannot be reversed or increased back to its original value. However, if the asset's value increases due to factors like revaluation or improvement, the increase is recorded separately and not as a reversal of depreciation.
| 5. How does depreciation affect taxes? | |
Ans. Depreciation has a tax impact as it is considered an expense and reduces the taxable income of a business. By deducting depreciation expenses, businesses can lower their taxable income and consequently reduce their tax liability. However, it is important to follow the tax regulations and depreciation methods prescribed by the tax authorities to ensure compliance.
Related Exams
About this Document
|
4.92/5 Rating |
|
Oct 25, 2024 Last updated |
Document Description: MCQ - Depreciation Accounting - 2 for CA Foundation 2024 is part of Principles and Practice of Accounting preparation.
The notes and questions for MCQ - Depreciation Accounting - 2 have been prepared according to the CA Foundation exam syllabus. Information about MCQ - Depreciation Accounting - 2 covers topics
like and MCQ - Depreciation Accounting - 2 Example, for CA Foundation 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises and tests below for MCQ - Depreciation Accounting - 2.
Introduction of MCQ - Depreciation Accounting - 2 in English is available as part of our Principles and Practice of Accounting
for CA Foundation & MCQ - Depreciation Accounting - 2 in Hindi for Principles and Practice of Accounting course.
Download more important topics related with notes, lectures and mock test series for CA Foundation
Exam by signing up for free. CA Foundation: MCQ - Depreciation Accounting - 2 | Principles and Practice of Accounting - CA Foundation
Description
Full syllabus notes, lecture & questions for MCQ - Depreciation Accounting - 2 | Principles and Practice of Accounting - CA Foundation - CA Foundation | Plus excerises question with solution to help you revise complete syllabus for Principles and Practice of Accounting | Best notes, free PDF download
Information about MCQ - Depreciation Accounting - 2
In this doc you can find the meaning of MCQ - Depreciation Accounting - 2 defined & explained in the simplest way possible. Besides explaining types of
MCQ - Depreciation Accounting - 2 theory, EduRev gives you an ample number of questions to practice MCQ - Depreciation Accounting - 2 tests, examples and also practice CA Foundation
tests
|
68 videos|160 docs|83 tests
|
Download as PDF
|
Explore Courses for CA Foundation exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
Summary
,Free
,video lectures
,MCQs
,Exam
,practice quizzes
,Semester Notes
,MCQ - Depreciation Accounting - 2 | Principles and Practice of Accounting - CA Foundation
,ppt
,past year papers
,mock tests for examination
,shortcuts and tricks
,study material
,Previous Year Questions with Solutions
,Extra Questions
,MCQ - Depreciation Accounting - 2 | Principles and Practice of Accounting - CA Foundation
,Important questions
,Objective type Questions
,Viva Questions
,Sample Paper
,MCQ - Depreciation Accounting - 2 | Principles and Practice of Accounting - CA Foundation
;
Additional Information about MCQ - Depreciation Accounting - 2 for CA Foundation Preparation
MCQ - Depreciation Accounting - 2 Free PDF Download
The MCQ - Depreciation Accounting - 2 is an invaluable resource that delves deep into the core of the CA Foundation exam.
These study notes are curated by experts and cover all the essential topics and concepts, making your preparation more efficient and effective.
With the help of these notes, you can grasp complex subjects quickly, revise important points easily,
and reinforce your understanding of key concepts. The study notes are presented in a concise and easy-to-understand manner,
allowing you to optimize your learning process. Whether you're looking for best-recommended books, sample papers, study material,
or toppers' notes, this PDF has got you covered. Download the MCQ - Depreciation Accounting - 2 now and kickstart your journey towards success in the CA Foundation exam.
Importance of MCQ - Depreciation Accounting - 2
The importance of MCQ - Depreciation Accounting - 2 cannot be overstated, especially for CA Foundation aspirants.
This document holds the key to success in the CA Foundation exam.
It offers a detailed understanding of the concept, providing invaluable insights into the topic.
By knowing the concepts well in advance, students can plan their preparation effectively.
Utilize this indispensable guide for a well-rounded preparation and achieve your desired results.
MCQ - Depreciation Accounting - 2 Notes
MCQ - Depreciation Accounting - 2 Notes offer in-depth insights into the specific topic to help you master it with ease.
This comprehensive document covers all aspects related to MCQ - Depreciation Accounting - 2.
It includes detailed information about the exam syllabus, recommended books, and study materials for a well-rounded preparation.
Practice papers and question papers enable you to assess your progress effectively.
Additionally, the paper analysis provides valuable tips for tackling the exam strategically.
Access to Toppers' notes gives you an edge in understanding complex concepts.
Whether you're a beginner or aiming for advanced proficiency, MCQ - Depreciation Accounting - 2 Notes on EduRev are your ultimate resource for success.
MCQ - Depreciation Accounting - 2 CA Foundation Questions
The "MCQ - Depreciation Accounting - 2 CA Foundation Questions" guide is a valuable resource for all aspiring students preparing for the
CA Foundation exam. It focuses on providing a wide range of practice questions to help students gauge
their understanding of the exam topics. These questions cover the entire syllabus, ensuring comprehensive preparation.
The guide includes previous years' question papers for students to familiarize themselves with the exam's format and difficulty level.
Additionally, it offers subject-specific question banks, allowing students to focus on weak areas and improve their performance.
Study MCQ - Depreciation Accounting - 2 on the App
Students of CA Foundation can study MCQ - Depreciation Accounting - 2 alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the MCQ - Depreciation Accounting - 2,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of MCQ - Depreciation Accounting - 2 is prepared as per the latest CA Foundation syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup