(A) Valuation
(B) Valuation and allocation
(C) Allocation
(D) Appropriation
The main objective of providing depreciation is to?
(A) Calculate the true profit
(B) Show the true financial position in the Balance Sheet
(C) Provide funds for replacement of fixed assets
(D) Both (a) and (b) above
Which of the following is true with respect to providing depreciation under diminishing balance method?
(A) The amount of depreciation keeps increasing every year while the rate of depreciation keeps decreasing
(B) The amount of depreciation and the rate of depreciation decrease every year
(C) The amount of depreciation decreases while the rate of depreciation remains the same
(D) The amount of depreciation and the rate of depreciation increases every year
The term__ Reserve‖ has been defined in __ of the Companies Act, 1956.
(A) Part III Schedule VI
(B) Part III Schedule V
(C) Part II Schedule VI
(D) Part I Schedule I
Which of the following is not a method of charging depreciation?
(A) Straight line Method
(B) Written down value Method
(C) Discounted present value Method
(D) Sum of digits Method
Provision is created for __.
(A) Unknown Liabilities
(B) Known Liabilities
(C) Creation of Secret Reserves
(D) All the Three
Which of the following is not a cause of difference in balance as per cash book and balance as per bank pass book__.
(A) Errors in cash book
(B) Errors in pass book
(C) Cheques deposited and cleared;
(D) Cheques issued but not presented for payment
Debit balance as per bank pass book mean __.
(A) Surplus cash
(B) Bank Overdraft
(C) Terms deposits with bank
(D) None of these