Related Questions

Annual depreciation costs are constant, when the __________ method of depreciation calculation is used.
A Declining balance
B Straight line
C Sum of the years digit
D None of these
As a salesperson, Poly can choose one of two methods of annual payment either an annual salary of Tk. 35,000 with no commission or an annual salary of Tk. 10,000 plus a 20 percent commission on her total annual sales. What must her total annual sales be to give her the same annual pay with either method?
A Tk.100,000
B Tk. 120,000
C Tk. 125,000
D Tk. 130,000
__________ 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
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
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
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
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
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
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 declining balance method of depreciation calculation, the
A Value of the asset decreases linearly with time
B Annual cost of depreciation is same every year
C Annual depreciation is the fixed percentage of the property value at the beginning of the particular year
D None of these

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