Related Questions

Rashna Company collected the following data in its accounting records in 2014 : From the income statement : Depreciation expense Tk. 1,000 Loss on sale of equipment 3,000 From the comparative balance sheet : Beginning balance , equipment Tk. 12,500 Ending balance , equipment 8,000 Beginning balance , accumulated depreciation 2,000 Ending balance , accumulated depreciation 2,400 No new equipment was purchased during the year. The equipment was sold at the end of the year. What was the cash in -flow from the sale of equipment in 2014?
A Tk, 3,900
B Tk. 1,000
C Tk. 900
D Tk. 600
What type of depreciation is due to the reduction in the demand for the function that the equipment or asset was designed to render?
A Functional depreciation
B Design depreciation
C Physical depreciation
D Demand depreciation
Square Company purchased a piece of equipment on January 1, 2022. The equipment cost was Tk 60,000 and had an estimated life of 8 years and a salvage value of Tk 8,000. What was the depreciation expense for the asset for 2023 under the double declining balance method?
A Tk 6,562
B Tk 6,500
C Tk 11,250
D Tk 15,000
E None of these
A company owns some land and buildings for which the following details are relevant : Cost of land Taka 50,000; cost of building Taka 100,000, estimated life of building 20 years, estimated residual value of building Taka 2000; estimated residual value of land Taka 50,000. The company uses the straight line depreciation method. Which is the correct annual depreciation charge for this asset?
A Taka 4000
B Taka 4900
C Taka 7400
D Taka 7500
Which of the following depreciation system ensures that the interest be charged on the cost of machine asset every year on the book value, but the rate of depreciation every year remains constant
A Sinking fund method
B Straight line method
C ABC charging method
D Annuity charging method
What do you call the after-tax present worth of all depreciation effects over the depreciation period of the asset?
A Asset recovery
B Depreciation recovery
C Period recovery
D After-tax recovery
__________ method of depreciation calculation ensures that the interest is charged on the cost of machine asset every year on the book value, but the rate of depreciation remains constant every year.
A Annuity charging
B Atraight line
C Ainking fund
D None of these
Under which depreciation method, the amount of depreciation expenses remains same throughtout the life of the asset?
A Straight line method
B Reducing balance method
C Number of units produced method
D Machine hours method
Under which method of depreciation, the amount of depreciation expenses remains constant throughout the life of the asset?
A Reducing balance method
B Unit of activity method
C Straight line method
D None of these
In what method of computing depreciation where it assumes that the loss in value is directly proportional to the age of the equipment or asset?
A Straight line method
B Sinking fund method
C Sum-of-year digit method
D Declining balance method

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