Tag: accountancy

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Questions Related to accountancy

Multiple choice meaning and elements of computer system computer in accounting accountancy

Which of the following is the smallest and fastest computer imitating brain working?

  1. Supercomputer

  2. Quantum Computer

  3. Param-$10,000$

  4. IBM chips

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Quantum Computer is the smallest and fastest computer imitating brain working.

Quantum computing is computing using quantum-mechanical phenomena, such as superposition and entanglement. A quantum computer is a device that performs quantum computing. Such a computer is different from binary digital electronic computers based on transistors. Whereas common digital computing requires that the data be encoded into binary digits (bits), each of which is always in one of two definite states (0 or 1), quantum computation uses quantum bits or qubits, which can be in superpositions of states. A quantum Turing machine is a theoretical model of such a computer, and is also known as the universal quantum computer. The field of quantum computing was initiated by the work of Paul Benioff and Yuri Manin in 1980, Richard Feynman in 1982, and David Deutsch in 1985.

Multiple choice meaning and elements of computer system computer in accounting accountancy

When UPC is used, the price of the item is located ________________.

  1. on the item

  2. on the item and on the her self

  3. in computer storage

  4. on the shelf and in computer storage
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

When UPC is used, the price of the item is located on the shelf and in computer storage.

Universal product code (UPC), a unique 12-digit number assigned to retail merchandise that identifies both the product and the vendor that sells the product. The UPC on a product typically appears adjacent to its bar code, the machine-readable representation of the UPC.

A barcode is an optical, machine-readable, representation of data; the data usually describes something about the object that carries the barcode. 

 

Multiple choice depreciation and causes of depreciation depreciation, provision and reserve depreciation accountancy

Depletion term is used in case of intangible assets.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The term 'Depletion' refers to the physical deterioration by the exhaustion of natural resources (ore-deposits in mines, oil wells, quarries, timber stands etc.)

For the purpose of intangible assets, the term 'Amortization' is used. It refers to the economic deterioration by the expiation of intangible assets such as patents, goodwill etc. 

Multiple choice depreciation and causes of depreciation depreciation, provision and reserve depreciation accountancy

Double-declining method is often used in ________.

  1. Singapore

  2. South Africa

  3. Japan

  4. India
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The double-declining balance method is a common accounting practice used in various jurisdictions, including India, to accelerate depreciation. While it is used globally, it is specifically recognized in Indian accounting standards and tax practices.

Multiple choice depreciation and causes of depreciation depreciation, provision and reserve depreciation accountancy

Depreciation is to be calculated from the date of _____________________.

  1. Asset put to use

  2. Purchase order of asset

  3. Receipt of asset at business premise

  4. Invoice of assets.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The expense is recognized and reported when the asset is placed into use and is calculated for each accounting period and reported under Accumulated Depreciation on the balance sheet and Depreciation Expense on the income statement. The amount reduces both the asset's value and the accounting period's income.

Multiple choice depreciation and causes of depreciation depreciation, provision and reserve depreciation accountancy

Which of the following is Depleted?

  1. Furniture

  2. Goodwill

  3. Machinery

  4. Coal Mines
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Depreciation and Depletion: In fact, the term 'depletion' is used in respect of the extraction of natural resources like quarries, and mines, that reduces the availability of quantity of the material or asset. Depreciation, as stated earlier, is a loss in value of an asset generally arising on account of wear and tear.

Multiple choice depreciation and causes of depreciation depreciation, provision and reserve depreciation accountancy

Depletion method depreciation is normally applied in case of _________ assets.

  1. Intangible

  2. Tangible

  3. Wasting

  4. Current
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Wasting Assets are the asset that has a limited life and thus decreases in value (depreciates) over time.

The term depletion is used in the context of extraction of natural resources like mines, quarries, etc. that reduces the availability of the quantity of the material or asset.

Hence Depletion method depreciation is normally applied in case of wasting assets.

Multiple choice depreciation and causes of depreciation depreciation, provision and reserve depreciation accountancy

Which one of the following depreciation methods is most suitable for a coal mine?

  1. Diminishing balance method

  2. Depletion method

  3. Fixed instalment method

  4. Sum of year's digits method
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Depletion method of depreciation is most suitable for coal mine. This method is specially used for those assets which deplete with use. The cost of the asset is divided by total workable deposits. For example :

If a mine has 2 lakh tons of coal and the value of mine is Rs. 5 lakhs, each ton of coal will cost Rs. 2½. The quantity of coal taken out of the mine in a period will be multiplied by the rate per ton, i.e., Rs. 2½ and the resultant figure will be the amount of depreciation.

Multiple choice depreciation and causes of depreciation depreciation, provision and reserve depreciation accountancy

Match List-I with List-II and select the correct answer using the codes given the lists.

List-I List-II
I. Amortisation (a) Diminition in the life of the assets due to excessive use
II. Depreciation (b) Exhaustion of natural resource
III. Depletion (c) Expiration of tangible assets
IV. Obsolescence (d) Expiration of intangible assets
(e) Economic deterioration due to improved inventions

  1. I-(a), II-(b), III-(c), IV-(d)

  2. I-(a), II-(b), III-(d), IV-(e)

  3. I-(e), II-(b), III-(c), IV-(d)

  4. I-(d), II-(c), III-(b), IV-(e)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

1.    Amortization is used for expiration of intangible assets.

2.   Depreciation is used for expiration of tangible assets.
3.    Depletion allocates the cost of associated with using an assets , in case reduction of a natural resources.
4.   Obsolescence means economic deterioration due to improved invention i.e older version has passed and a new version was already on the market. So, here the D option is right answer.
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