Depreciation — Quick Practice Quiz

Question 1 of 6

The Written Down Value (WDV) method of depreciation results in:

Equal depreciation amount every year Higher depreciation in earlier years, declining over time Depreciation based only on units produced No depreciation in the year of purchase

Question 2 of 6

Under the Straight Line Method, depreciation is calculated on:

Original cost of the asset Written down value of the asset Market value of the asset Replacement value of the asset

Question 3 of 6

Depreciation is charged on which of the following assets?

Land Machinery Goodwill Investments

Question 4 of 6

The accounting standard that deals with depreciation is:

AS 2 AS 9 AS 10 AS 12

Question 5 of 6

Depreciation arises mainly due to:

Wear and tear from use over time Increase in market demand Change in accounting policy Government tax regulations

Question 6 of 6

If the useful life of an asset is revised, depreciation should be:

Left unchanged for consistency Recalculated over the remaining useful life Reversed for all prior years Charged fully in the current year

Foundation

Intermediate

Final

Foundation

Intermediate

Executive

Professional