DEPRECIATION, PROVISIONS & RESERVES

Reserve arising from capital receipts are known as

• capital Reserve

• Reserve fund

• Any of ( a ) or ( b )

• None of these

Provisions are

• external transactions

• internal transactions

• can be ( a ) or ( b )

• None of these

if the amount of any known liability cannot be determined with accuracy

• a liability should be provided

• a provision should be made

• a reserve should be set aside

• none of these

Provision is a

• specific reserve

• general reserve

• capital reserve

• none of these

Which of the following is a provision?

• provision for doubtful debts

• provision for repair and renewals

• provision for taxation

• all above

Provision is a......

• charge against profit

• appropriation of profit

• contingent liability

• none of the these

Amount set aside out of profit of the business is called

• provision

• reserve

• depreciation

• loss

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

The original cost of an asset is Rs. 1,20,000 and its Scrap Value is likely to be Rs.20,000 after its estimated useful life of 10 years, the annual depreciation written off will be _____.

Annual depreciation of an asset is Rs.25,000 and the cost of acquiring an asset is Rs.5,00,000. So the rate of depreciation would be ____% p.a.