Depreciation

Characteristics of depreciation is

• decline in the value of assets

• Depreciation is of permanent nature

• Depreciation is a noncash expense

• All of the above

Depreciation arises because of

• Obsolescence

• Constant use of assets

• Expiry of time

• All of the above

Depreciation for business is

• Loss

• Income

• Gain

• Liability

Factors taken into consideration for providing depreciation are

• Total cost of the asset

• Estimated useful life of the asset

• Estimated Scrap value of the asset

• All of the above

Depreciation in the value of asset is:

• Permanent decrease

• Temporary decrease

• Seasonal decrease

• None of the above

Depreciation is provided on :

• Current assets

• Fictitious assets

• Fixed assets

• Intangible assets

Depreciation under fixed instalment method is calculated

• On the purchase price of the asset

• On the closing balance of the asset

• On each year's opening balance of the asset

• On the market price of the asset

Depreciation arises due to

• Fluctuations

• Fall in the value of money

• Temporary fall in the market value of asset

• Physical wear and tear

Main objective of charging depreciation is

• Ascertaining true profit/ loss

• Ascertaining true financial position

• Ascertaining true cost of production

• All of the above

depreciation is a non cash expenditure

• True

• False