If the total charge of depreciation and maintenance cost are considered, the method that provides a uniform charge is ____.

(a)

Straight line method

(b)

Diminishing balance method

(c)

Annuity method

(d)

Insurance policy method

Depreciation provided on machinery is debited to ____________

(a)

Depreciation account

(b)

Machinery account

(c)

Trading account

(d)

Provision for depreciation account

Depreciation is provided on ____________

(a)

Fixed assets

(b)

Current assets

(c)

Outstanding charges

(d)

All assets

Depreciation is the process of ____________

(a)

Allocation of cost of the asset to the period of its useful life

(b)

Valuation of assets

(c)

Maintenance of an asset in a state of efficiency

(d)

Adding value to the asset

A depreciable asset may suffer obsolescence due to______.

(a)

Passage of time

(b)

Wear and tear

(c)

Technological changes

(d)

None of the above