Related Questions

In what method of computing depreciation where it assumes that the annual cost of depreciation is a fixed percentage of the book value at the beginning of the year?
A Straight line method
B Sinking fund method
C Sum-of-year digit method
D Declining balance method
What is the main reason why the sinking fund method of computing depreciation is seldom used in the industry?
A Unstable economy
B Rate of interest cannot be exactly determined
C The initial deprecation is high
D The initial depreciation is low
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
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
Markets in which funds are transferred from those who have excess funds available to those who have a shortage of available funds are called.
A commodity markets
B fund-available markets
C derivative exchange markets
D financial markets
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
অবচয়ের কোন পদ্ধতি প্রথম বছরের অবচয় সবচেয়ে কম দেখাবে? (Which depreciation method shows the lowest amount of depreciation in the first year?)
A সরলরৈখিক পদ্ধতি (Straight line method )
B ক্রমহ্রাসমান পদ্ধতি (Declining balance method)
C বর্ষ সংখ্যার সমষ্টি পদ্ধতি (Sum of the years digit method)
D উৎপাদন একক (Units of production)
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
The depreciation during the year 'n', in diminishing balance method of depreciation calculation, is calculated by multiplying a fixed percentage 'N' to the
A Initial cost
B Book value at the end of (n - 1)th year
C Depreciation during the (n - 1)th year
D Difference between initial cost and salvage value

Next steps