Financial Accounting MCQs
P
Q 11. Which of the following statements is correct?
R
Q 12. In which of the following methods, the cost of the asset is spread over in equal proportion during its useful economic life?
R
Q 13. Which of the following factors are primarily considered to determine the economic life of an asset?
P
Q 14. The accounting process of gradually converting the unexpired cost of fixed assets into expenses over a series of accounting periods is
V
Q 15. Which of the following statements is true with regard to written down value method of depreciation? i. The rate at which the asset is written off reduces year after year ii. The amount of depreciation provided reduces from year to year iii. The rate of depreciation as well as the amount of depreciation reduce year after year iv. The value of the asset gets reduced to zero over a period of time
G
Q 16. The portion of the acquisition cost of the asset yet to be allocated is known as
S
Q 17. Depreciation is a process of
V
Q 18. The main objective of providing depreciation is to
P
Q 19. Which of the following statements best describes the purpose of depreciation?
G