Practice Depreciation Questions and Answers

• There are certain expenses that may be in the nature of revenue but their benefit may not be consumed in the year in which such expenditure has been incurr...
• NRV or net realizable value of inventory is the expected selling price or market value less....
• If a firm has been changing its depreciation policy every year, it is violating the_______ concept/principle of accounting.
• Under AS 6, which of the following cannot be considered a method of depreciation?
• Under the Written Down Value (WDV) method, depreciation is:
• A machine costing ₹8,00,000 has a salvage value of ₹80,000 after 10 years. The company follows Straight Line Method (SLM). During the 4th year, it swit...
• Under which condition will no depreciation be charged on a fixed asset during a financial year?
• A machinery costing ₹10 lakhs has a useful life of 5 years and a salvage value of ₹1 lakh. Using the straight-line method, the firm changes the useful ...
• XYZ Ltd. uses Written Down Value (WDV) method for depreciation. It acquires a machine for ₹10 lakhs, has a salvage value of ₹1 lakh and charges 20% dep...
• Which asset is not eligible for depreciation under the Income Tax Act?
• A company acquired a machine for ₹12 lakhs with an expected useful life of 6 years and residual value of ₹1.2 lakh. Using the straight-line method, the...
• A machine costing ₹8,00,000 has a salvage value of ₹80,000 after 10 years. The company follows Straight Line Method (SLM). During the 4th year, it swit...
• Under which condition will no depreciation be charged on a fixed asset during a financial year?
• A company purchases machinery for ₹50 lakhs with a useful life of 10 years and salvage value of ₹5 lakhs. The company uses straight-line depreciation. ...
• A company purchases an intangible asset (software license) for ₹20 lakhs, with a legal validity of 5 years and probable economic benefit of 8 years. As p...