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Accounting MCQ
Accounting MCQ
1)What is depreciation?
A) Cost of a fixed asset B) Cost of a fixed assets repair
C) The residual value of a fixed asset D) Portion of a fixed assets cost consumed during the
current accounting period
2)Under which depreciation method the amount of depreciation expenses remains same
throughout the useful life of a fixed asset
A) Straight line method B) Reducing balance method C) Number of units produced method
D) Machine hours method
3)A company purchased a vehicle for $6000. I will be used for 5 years and its residual value
is expected to be $1000. What is the annual amount of deprecation using straight line
method of depreciation?
A) $1000 B) $2000 C) $3000 D) $3300
4)What is the accumulated deprecation?
A) Sum of all depreciation expenses of a fixed asset B) Depreciation expenses
C) Cost of depletion of assets D) Future value of fixed asset
5)Which of the following is the normal balance of an accumulated depreciation account?
A) Debit balance B) Credit balance C) Nil balance
6)How trial balance shows the accumulated depreciation?
A) as a debit item B) as a credit item C) It doesnt show
7)Which of the following is a double entry for depreciation expenses?
A) Accumulated depreciation debit and depreciation expenses Credit
B) Depreciation expenses Debit and accumulated depreciation Credit
C) Cash Debit and depreciation expenses Credit
D) Depreciation expenses Debit and cash Credit
8)An alternative term used for accumulated depreciation expenses?
A) Provision for depreciation B) Cumulative depreciation
C) Targeted depreciation D) Depletion
9)Which of the following is/are a kind of depreciation expenses?
A) Amortization B) Depletion C) Both of them
10)A fixed asset was bought for $5000. Its accumulated depreciation is $3000 and rate of
depreciation is 20%. Calculate its depreciation expenses for the current accounting period
using reducing balance method?
A) $600 B) $2000 C) $300 D) $400
11)In depreciation calculation, the useful life of a fixed asset is:
A) a certain figure B) an estimate C) a predetermined figure for all fixed assets