CA Foundation Depreciation and Amortisation — practice questions
25 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice CA Foundation Depreciation and Amortisation in the app →Depreciation is best described as:Useful life of an asset is:Straight Line Method is also known as:Which method results in higher depreciation in earlier years?Depreciation is charged primarily to:Machine cost ₹10,00,000, residual ₹1,00,000, life 10 years. SLM depreciation per year:Asset bought 1 March 2022, year ends 31 March 2022, SLM ₹12,000 per year. Depreciation:The depreciable amount equals:Under provision for depreciation method, asset is shown at:Which is NOT a reason for asset value decreasing over time?When the second alternative is used, the asset account in the ledger shows:Depreciation begins when an asset is:Each significant component of an asset should be:Machine cost ₹5,00,000, residual ₹50,000, life 5 years. WDV rate = 1 − ⁵√(50,000/5,00,000) × 100. Approx WDV rUnder straight line method, after full useful life the carrying amount equals:Machine bought 1 April 2020 for ₹4,00,000, WDV @ 10%. Carrying amount on 31 March 2023:On sale of asset for ₹2,00,000 with WDV ₹2,30,000, the loss on sale is:Change in method of depreciation from SLM to WDV is treated under AS as:Inauguration cost of a new facility is:Initial estimate of dismantling cost on installation of asset is:Income Tax Act prescribes which method for most assets?Increase in useful life from 5 to 8 years is treated as:Amortisation applies to:Test cost incurred before commercial production starts is:Relocation cost of moving an existing asset to a new site is: