Adjustment and Depreciation

Can never be changed

Can be changed

Both of these

None of these

A certain figure

An estimate

A predetermined figure for all fixed assets

None of these

Prudence

A mistake – the firm must change its policy immediately

Consistency

Going concern

Asset

Liability

Income

Expense

Wages paid to production staff

Carriage inwards on new machinery

Power charges for machinery

Carriage inwards on raw material

Straight line method

Written down value method

Annuity method

Depreciation fund method

continuous basis

temporary basis

Daily basis

monthly basis

Asset

Liability

Loss

Capital

Current asset

wasting assets

intangible assets

fixed assets