Chapter 12 Depreciation

At the time of charging depreciation, ____ account is debited and ____ account is credited.

Estimated sales value of an asset after its working life is called_____.

The following are the examples of tangible non currents assets except

• Factory machines

• Trolleys in supermarkets

• Office equipments

• Customer goodwill

The following are the factors affecting depreciation...

• Passage of time

• Physical deterioration

• Depletion

• All of the above

The following are the common causes of depreciation except..

• Wear and tear

• Passage of time

• Usage

• Amount of bad debts

The ____________ method of depreciation assumes that the non current asset is used EVENLY throughout its useful life

• Reducing Balance Method

• Straight Line Method

• revaluations method

• My own method

Net Book Value is

• Cost - depreciation

• Cost - Accumulated Depreciation

• Cost + Depreciation

• Cost + Accumulated Depreciation

Accumulated Deprecation has a __________nature

• Debit

• Credit

• Balance

• No

Identify the concept which supports the need for depreciation.

• Historical cost concept

• Matching Principle

• Monetary concept

• Accounting period concept

Identify the formula for depreciation under Reducing Balance Method

• % x (Cost + Accumulated depreciation)

• % x (Cost - Accumulated depreciation)

• % x cost

• Cost - Scrap value

  -----------------------------

  Useful life