Cash received from sale of fixed asset is credited to ____________

(a)

Profit and loss account

(b)

Fixed asset account

(c)

Depreciation account

(d)

Bank account

Depreciation is caused by ____.

(a)

Lapse of time

(b)

Usage

(c)

Obsolescence

(d)

a, b and c

For which of the following assets, the depletion method is adopted for writing off cost of the asset?

(a)

Plant and machinery

(b)

Mines and quarries

(c)

Buildings

(d)

Trademark

Which method shall be efficient, if repairs and maintenance cost of an asset increases as it grows older.

(a)

Straight line method

(b)

Reducing balance method

(c)

Sinking fund method

(d)

Annuity method

If the rate of depreciation is same, then the amount of depreciation under straight line method vis-à-vis written down value method will be ________.

(a)

Equal in all years

(b)

Equal in the first year but higher in subsequent years

(c)

Equal in the first year but lower in subsequent years

(d)

Lower in the first year but equal in subsequent years.