Depreciation is a process of____________?

Accounting Mcqs 25/02/2024

A. Valuation
B. Valuation and allocation
C. Allocation
D. Appropriation

AS-6 on depreciation accounting defines ‗depreciation‘ as the measure of wearing out, consumption or other loss of a value of a depreciable asset arising from use, effluxion of time or obsolescence through technology and market changes. Depreciation is allocated so as to charge a fair proportion of the depreciable amount in each accounting period during the expected useful life of the asset. Depreciation includes amortization of assets whose useful life is predetermined.

Related Mcqs:

    Auditing is what?
    A. Reporting the financial information B. Examination of financial statements C. Preparation financial statements D. maintaining the ledger records...
    Current assets – Current liabilities=?
    A. Capital B. Absorbed capital C. Net assets D. Net working capital...
    Which of the following methods is not a practical way of realizing revenue?
    A. Delivery method B. Percentage-of-completion method C. Production method D. Moving average method...
    The adjustment to be made for prepaid expenses is____________?
    A. Add prepaid expenses to respective expenses and show it as an asset B. Deduct prepaid expenses from respective expenses and show it as an asset C. Add prepaid expenses to respective expenses and show it as a liability D. Deduct prepaid expenses from respective expenses and show it as a liability...
    Closing entries are generally passed:
    A. At the time of opening new books of account B. At the time of closing the accounts C. During the course of accounting period any time D. After certification of accounts...

Leave a Reply

Your email address will not be published. Required fields are marked *