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Adjustment and Depreciation
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Adjustment and Depreciation
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Adjustment and Depreciation
Items of property, plant and equipment can be recognized as assets when their cost can be measured reliably and it is likely that the future economic benefits associated with the assets:
Will increase gradually
Will diminish with the passage of time
Will flow to the available
Won’t be available
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rikazzz
Comment
Adjustment and Depreciation
The permanent, continuing and gradual shrinkage in the book value of a fixed asset is called _______
Depreciation
Appreciation
Reduction
Computation
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rikazzz
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Adjustment and Depreciation
Depreciation amount + Residual value of a fixed asset =?
Depreciation expenses
Accumulated depreciation
Cost of the fixed assets
Future economic benefits of a fixed asset
Author:
rikazzz
Comment
Adjustment and Depreciation
Depreciation fund is also called:
reserve fund
compensation fund
workers fund
sinking fund
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rikazzz
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Adjustment and Depreciation
The method is especially suited to natural resources is said to be:
Annuity method
Depletion method
Revaluation method
Sum of digits method
Author:
rikazzz
Comment
Adjustment and Depreciation
If Rent expenses = $5000, Insurance expenses = $4000. What amount will be shown in income statement?
6000
12000
8000
9000
Author:
rikazzz
Comment
Adjustment and Depreciation
Under the diminishing balance method, depreciation is calculated on:
Scrap value
On original value
On book value
None of these
Author:
rikazzz
Comment
Adjustment and Depreciation
The term __________ is generally used for the depreciation of natural resources.
Amortization
Depletion
Appreciation
Disposal value
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rikazzz
Comment
Adjustment and Depreciation
Loss on the sale of machinery should be written off against _______
Share premium account
Sales account
Depreciation fund account
General reserve account
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rikazzz
Comment
Adjustment and Depreciation
Which of the following would be treated as revenue expenditure?
Painting of new office block
Petrol for motor van
Replacement engine for motor van
Both B and C
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rikazzz
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