Classical

Financial and Management Accounting - Financial and Management Accounting MCQ

111:  
In case the depreciable assets are revalued, the provision for depreciation is based on
A.
The revalued amount on the estimate of the remaining useful life of such assets
B.

Original cost of the assets

C.

Depreciated value of the assets

D.

AS - 6 is silent in this regard

 
 

Option: A

Explanation :


112:  

Contingent liability is shown due to

A.

Convention of full disclosure

B.

Convention of conservatism

C.

Convention of materiality

D.

Dual aspect concept

 
 

Option: C

Explanation :


113:  
According to which of the following concepts, fixed assets are depreciated over their useful life rather than over a shorter period on the expectation of early liquidation?
A.

Cost concept

B.

Matching concept

C.

Going concern concept

D.

Business entity concept

 
 

Option: C

Explanation :


114:  
Which of the following factors should be considered while estimating the useful life of a depreciable asset?
A.

Expected physical wear and tear

B.

Obsolescence

C.

Legal or other limits on the use of asset

D.

All of the above

 
 

Option: D

Explanation :


115:  
Match List I with List II and select correct answer using the codes given below:
     List I                                       List II
a. Real Accounts            I. Dr. the receiver Cr. the giver
b. Nominal Accounts    II. Dr. what comes in Cr. what goes out
c. Personal Accounts  Ill. Dr. all expenses and losses Cr. all gains and incomes
A.

 a   b   c

III   II    I

B.

 a   b   c

  I   III    II

C.

 a   b   c

 II   III    I

D.

 a   b   c

 I   II    III

 
 

Option: C

Explanation :




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