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Free Download as PDF of Financial Accounting Questions with Answers as per exam pattern, to help you in day to day learning. We provide all important questions and answers for all Exam.
25. The balance in the asset account will not be reduced to zero under this method _________.
- [A] straight line method .
- [B] written down value method.
- [C] annuity method.
- [D] none of the above.
Answer: Option [B]
26. Under which method of depreciation, the earlier year of the life of the asset, profits are more _________.
- [A] straight line method.
- [B] written down value method.
- [C] annuity method.
- [D] depreciation fund method.
Answer: Option [A]
27. Diminishing balance method is also called _________.
- [A] written down value method.
- [B] annuity method.
- [C] depreciation fund method.
- [D] none of the above.
Answer: Option [A]
28. Deficit balance can be shown in balance sheet as
- [A] Liability.
- [B] Assets.
- [C] Owner's equity
- [D] None of above
Answer: Option [B]
29. Under annuity method the amount of depreciation is found out from _________.
- [A] log tables.
- [B] sinking fund tables.
- [C] annuity tables.
- [D] present value tables.
Answer: Option [C]
30. Under depreciation fund method, the amount of depreciation is calculated with reference to
- [A] log tables.
- [B] sinking fund tables.
- [C] annuity tables.
- [D] none of the above
Answer: Option [B]
31. The difference between the book value at the beginning and at the end (revaluation amount) is
- [A] depreciation.
- [B] appreciation.
- [C] reduction.
- [D] computation.
Answer: Option [A]
32. Expenses which can be directly identified with or incurred for particular department are called
- [A] direct expenses.
- [B] indirect expenses.
- [C] monthly expenses.
- [D] none of the above.
Answer: Option [A]
33. In statement of affairs liabilities are shown on the __________.
- [A] right hand side.
- [B] left hand side.
- [C] right hand side top.
- [D] right hand side bottom.
Answer: Option [B]
34. Under single entry system, opening capital can be found by preparing a statement of affairs
- [A] at the end of the year.
- [B] at the beginning of the year.
- [C] at the end of every month.
- [D] at the end of every quarter.
Answer: Option [B]
35. Under single entry system in net worth method, drawings is added with _______.
- [A] opening capital.
- [B] closing capital.
- [C] additional capital.
- [D] none of the above.
Answer: Option [B]
36. Under single entry system in net worth method, opening capital is subtracted from _________.
- [A] opening capital.
- [B] closing capital.
- [C] additional capital.
- [D] drawings.
Answer: Option [B]
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