Accounting MCQs

Question 1

Which of the following is the normal balance of an accumulated depreciation account?

Accepted Answer

Credit balance

Answer

Debit balance

Answer

Nil balance

Answer

None of the above

Question 2

How trial balance shows the accumulated depreciation?

Accepted Answer

as a credit item

Answer

as a debit item

Answer

It doesn't show

Answer

None of the above

Question 3

Which of the following is a double entry for deprecation expenses?

Accepted Answer

Depreciation expenses Debit and accumulated depreciation Credit

Answer

Accumulated depreciation Debit and depreciation expenses Credit

Answer

Cash Debit and Depreciation expenses Credit

Answer

Depreciation expenses Debit and Cash Credit

Question 4

An alternative term used for accumulated depreciation expenses?

Accepted Answer

Provision for depreciation

Answer

Cumulative depreciation

Answer

Targeted depreciation

Answer

Depletion

Question 5

Which of the following is/are kind of depreciation expenses?

Accepted Answer

Both of them

Answer

Amortization

Answer

Depletion

Answer

None of the above

Question 6

In depreciation calculation, the useful life of a fixed asset is:

Accepted Answer

an estimate

Answer

a certain figure

Answer

a predetermined figure for all fixed assets

Answer

None of the above

Question 7

Depreciable amount + Residual value of a fixed asset = ?

Accepted Answer

Cost of the fixed asset

Answer

Depreciation expenses

Answer

Accumulated depreciation

Answer

Future economic benefits of a fixed asset

Question 8

Cost of a fixed asset - Accumulated depreciation expenses of the fixed asset = ?

Accepted Answer

Book value of a fixed asset

Answer

Market value of a fixed asset

Answer

Historical cost of a fixed asset

Answer

Recoverable amount if a fixed asset

Question 9

The purchase price of a software that will be used for more than 12 months should be regarded as

Accepted Answer

a capital expenditure

Answer

a revenue expenditure

Answer

a long term expense

Answer

an accounting period expense