Adjustment and Depreciation
Provision for depreciation account appears on the _______
Asset side
Liability side
PandL account debit side
P andL account credit side
Liability side
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An unearned income adjusting entry affects.A. Asset and liabilities
B. Cash and income
C. Income and liabilities
D. Cash and liabilities
Under insurance policy method the premium is paid in the _______
A. beginning of each year
B. end of each year
C. beginning of each month
D. end of each month
Identify the consequences of not making adjustment entry for accrued expense:
A. Overstatement of liabilities
B. Understatement of liabilities
C. Overstatement of expenses
D. Understatement of capital
The main object of providing depreciation is:
A. To calculate true profit
B. To show true financial position
C. To reduce tax
D. To provide funds for replacement
Which of the following accounting concepts or principles required the calculation of depreciation of the fixed assets?
A. Prudence concept
B. Accrual concept
C. Consistency concept
D. Matching concept
The amount of depreciation charged on a machinery will be debited to:
A. Machinery account
B. Depreciation account
C. Cash account
D. Repair account
Depreciation is:
A. An income
B. An asset
C. A loss
D. A liability
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