PU COM 2026 Depreciation Free Quiz 1

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PU COM 2026 Depreciation Free Quiz 1

PU COM Quiz

10:00

Answered: 0 / 10

Remaining: 10

Navigator 10 Q

General

General 10 MCQs

1. What is depreciation?

A. Allocation of cost over useful life B. Impairment C. Amortization D. Depletion

2. What are the causes of depreciation?

A. Wear and tear only B. Wear and tear, obsolescence, passage of time C. Obsolescence only D. Passage of time only

3. How is straight-line depreciation calculated?

A. Cost × Rate B. Cost / Useful Life C. (Cost - Residual Value) / Useful Life D. (Cost + Residual Value) / Useful Life

4. What method applies a fixed rate to the book value?

A. Straight-line B. Units of production C. Sum of years digits D. Diminishing balance

5. What is the book value of an asset?

A. Cost - Accumulated depreciation B. Fair value C. Market value D. Residual value

6. What is a provision for depreciation?

A. Depreciation expense B. Provision for depreciation C. Accumulated depreciation D. Impairment loss

7. What is an accelerated depreciation method?

A. Straight-line B. Units of production C. Double declining balance D. Sum of years digits

8. How is gain or loss on disposal calculated?

A. Proceeds - Cost B. Proceeds + Cost C. Cost - Proceeds D. Proceeds - Book value

9. What is the journal entry for depreciation?

A. Debit Depreciation Expense, Credit Provision for Depreciation B. Debit Provision, Credit Expense C. Debit Asset, Credit Expense D. Debit Expense, Credit Asset

10. What is the period over which an asset is expected to be used?

A. Economic life B. Useful life C. Physical life D. Legal life

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