Accounting MCQ Questions and Solutions with Explanations

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71.
A company purchased a vehicle for Rs.6000. It will be used for 5 years and its residual value is expected to be Rs.1000. What is the annual amount of depreciation using straight line method of depreciation?

A. Rs. 1000

B. Rs. 2000

C. Rs. 3000

D. Rs. 5000

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72.
Which of the following is the normal balance of an accumulated depreciation account?

A. Debit balance

B. Credit balance

C. Nil balance

D. None of the above

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73.
How trial balance shows the accumulated depreciation?

A. as a debit item

B. as a credit item

C. It doesn't show

D. None of the above

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74.
Which of the following is a double entry for deprecation expenses?

A. Accumulated depreciation Debit and depreciation expenses Credit

B. Depreciation expenses Debit and accumulated depreciation Credit

C. Cash Debit and Depreciation expenses Credit

D. Depreciation expenses Debit and Cash Credit

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75.
An alternative term used for accumulated depreciation expenses?

A. Provision for depreciation

B. Cumulative depreciation

C. Targeted depreciation

D. Depletion

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76.
Which of the following is/are kind of depreciation expenses?

A. Amortization

B. Depletion

C. Both of them

D. None of the above

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77.
In depreciation calculation, the useful life of a fixed asset is:

A. a certain figure

B. an estimate

C. a predetermined figure for all fixed assets

D. None of the above

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78.
Depreciable amount + Residual value of a fixed asset = ?

A. Depreciation expenses

B. Accumulated depreciation

C. Cost of the fixed asset

D. Future economic benefits of a fixed asset

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79.
Cost of a fixed asset - Accumulated depreciation expenses of the fixed asset = ?

A. Book value of a fixed asset

B. Market value of a fixed asset

C. Historical cost of a fixed asset

D. Recoverable amount if a fixed asset

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80.
The purchase price of a software that will be used for more than 12 months should be regarded as

A. a revenue expenditure

B. a capital expenditure

C. a long term expense

D. an accounting period expense

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Accounting MCQ Questions and Solutions with Explanations | Commerce

71. A company purchased a vehicle for Rs.6000. It will be used for 5 years and its residual value is expected to be Rs.1000. What is the annual amount of depreciation using straight line method of depreciation?

Answer & Solution

72. Which of the following is the normal balance of an accumulated depreciation account?

Answer & Solution

73. How trial balance shows the accumulated depreciation?

Answer & Solution

74. Which of the following is a double entry for deprecation expenses?

Answer & Solution

75. An alternative term used for accumulated depreciation expenses?

Answer & Solution

76. Which of the following is/are kind of depreciation expenses?

Answer & Solution

77. In depreciation calculation, the useful life of a fixed asset is:

Answer & Solution

78. Depreciable amount + Residual value of a fixed asset = ?

Answer & Solution

79. Cost of a fixed asset - Accumulated depreciation expenses of the fixed asset = ?

Answer & Solution

80. The purchase price of a software that will be used for more than 12 months should be regarded as

Answer & Solution

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71.
A company purchased a vehicle for Rs.6000. It will be used for 5 years and its residual value is expected to be Rs.1000. What is the annual amount of depreciation using straight line method of depreciation?

72.
Which of the following is the normal balance of an accumulated depreciation account?

73.
How trial balance shows the accumulated depreciation?

74.
Which of the following is a double entry for deprecation expenses?

75.
An alternative term used for accumulated depreciation expenses?

76.
Which of the following is/are kind of depreciation expenses?

77.
In depreciation calculation, the useful life of a fixed asset is:

78.
Depreciable amount + Residual value of a fixed asset = ?

79.
Cost of a fixed asset - Accumulated depreciation expenses of the fixed asset = ?

80.
The purchase price of a software that will be used for more than 12 months should be regarded as