FA 6th Quiz
Authored by Pooja Chaudhary
Business
Professional Development
Used 2+ times
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9 questions
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1.
MULTIPLE CHOICE QUESTION
2 mins • 1 pt
Which one of the following should not be capitalized?
Cost of building
Cost of installation of plant and machinery
Cost of patent
Cost of maintenance
2.
MULTIPLE CHOICE QUESTION
2 mins • 1 pt
Which one of the following should be capitalized?
Interest expenses
Cost of raw material
Cost of repair
Cost of copyright
3.
MULTIPLE CHOICE QUESTION
2 mins • 1 pt
If a firm erroneously charges the capitalization of expenditure as expensing of expenditure:
Current year Expenses- Understated
Current year Profit – Overstated
Asset Value – Understated
Asset Value will not be impacted
4.
MULTIPLE CHOICE QUESTION
2 mins • 1 pt
If a firm erroneously charges the expensing of expenditure as capitalization of expenditure:
Current year Expenses – Overstated
Current year Profit – Understated
Asset Value – Overstated
Asset Value will not be impacted
5.
MULTIPLE CHOICE QUESTION
2 mins • 1 pt
Which on of the following is not a factor to calculate depreciation?
Cost of the asset
Useful life of the asset
Scrap value
Repair cost of the asset
6.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
Which of the following could not be a valid reason of depreciation?
Bad operating results
Physical damage
wear and tear
Technology change
7.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
In case of software firm which of the following method of depreciation is more suitable?
Straight line method
Written down value method
Production unit method
Any method
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