The Bank Reconciliation Statement is prepared?
(A) To rectify the mistakes in the Cash Book
(B) To arrive at the Bank Balance
(C) To arrive at the Cash Balance
(D) To bring out the reasons for the difference between the Balance as per Cash Book and the Balance as per Bank Statement
Difference in Bank Balance as per Pass Book and Cash Book may arise on account of_____________?
(A) Cheque issued but not presented
(B) Cheque issued but dishonoured
(C) Cheque deposited and credited by bank
(D) Both
Debit side of Bank Pass book corresponds to___________?
(A) Credit side of Cash Book
(B) Debit side of Cash Book
(C) Debit side of Trial Balance
(D) Credit side of Balance Sheet
Credit balance as per Cash Book mean____________?
(A) Surplus cash
(B) Bank overdraft
(C) Terms deposits with bank
(D) None of these
The portion of the acquisition cost of the asset yet to be allocated is known as___________?
(A) Written down value
(B) Accumulated value
(C) Salvage value
(D) Residual Value
Depreciation is a process of____________?
(A) Valuation
(B) Valuation and allocation
(C) Allocation
(D) Appropriation
The main objective of providing depreciation is to?
(A) Calculate the true profit
(B) Show the true financial position in the Balance Sheet
(C) Provide funds for replacement of fixed assets
(D) Both
Which of the following statements best describes the purpose of depreciation?
(A) Regular reduction of asset value to correspond to changes in market value as the asset ages
(B) A process of correlating the market value of an asset with its gradual decline in physical efficiency
(C) Allocation of cost in a manner that will ensure that Plant and Equipment items are not carried on the Balance Sheet in excess of net realizable value
(D) Allocation of the cost of an asset to the periods in which services are received from the asset
Which of the following is true with respect to providing depreciation under diminishing balance method?
(A) The amount of depreciation keeps increasing every year while the rate of depreciation keeps decreasing
(B) The amount of depreciation and the rate of depreciation decrease every year
(C) The amount of depreciation decreases while the rate of depreciation remains the same
(D) The amount of depreciation and the rate of depreciation increases every year
A second hand car is purchased for 2,00,000 and sold at 1,40,000 after two years. If depreciation is charged @ 10% on written down value method, find the profit or loss on sale of the Second hand car?
(A) Loss of 20,000
(B) Loss of 22,000
(C) Loss of 11,000
(D) Profit of 11,000