Depreciation Accounting
Telangana Open School (TOSS) · Class 12 · Accountancy
Practice quiz for Depreciation Accounting — Telangana Open School (TOSS) Class 12 Accountancy. MCQs and questions with answers to test your preparation.
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Quick Quiz: Depreciation Accounting
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What is depreciation?
Which of the following is a cause of depreciation?
Depreciation is charged on which type of assets?
Which method charges equal depreciation every year?
Sample Questions
What happens to the book value of an asset under the Straight Line Method at the end of its useful life?
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It becomes zero or equals scrap value
Under the Straight Line Method, the asset is fully depreciated to either zero or its estimated scrap value.
Which of the following is NOT a factor affecting depreciation?
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Market price of similar new assets
Factors affecting depreciation are cost, useful life, and scrap value. Market prices of new assets do not directly affect depreciation calculation.
True or False: Depreciation is a cash expense.
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False
Depreciation is a non-cash expense. It represents the reduction in value of an asset but does not involve actual cash outflow.
What is the purpose of charging depreciation?
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To show true financial position
Charging depreciation ensures that profits and balance sheets reflect the actual condition of the business by accounting for asset value reduction.
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