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Take Quick Test for Class XI on Depreciation

Depreciation in accountancy is very important concept to mean the decrease in value of assets (fair value depreciation), and  the allocation of the cost of assets to periods in which the assets are used (depreciation with the matching principle).Thus , decrease in value of asset  affects values of businesses and entities whereas allocation of cost over period of time  latter affects net income.Several standard methods of computing depreciation expense may be used, including fixed percentage, straight line, and declining balance methods.

10 questions on Deprecaition chapter of accountancy of  Class XI

test quiz description

Comments ( 23 )

  1. Nagendra Kumar Pathak
    January 7, 2012 at 9:59 AM

    We can also enhance the standard of questions as per competitive exams like civil and state exams.
    Because the questions relating to accounts are good no doubt but as i am aspiring for civil, so i consider these questions some below to that level.

    • admin

      tenquestion.com provides test papers from Class VII to CIVIL Services exams. The accountancy test papers relate to Class XI only.

  2. Dear Sir,
    Plz send me XI and XII Social Science Practice Set For ctet 2012.
    as soon as possible. My E-mail : sumangaurs@gmail.com

  3. You have a choice of buying a luxury car or a standard model for the same price. How will depreciation affect both types of cars? If you are interested in a car that has the least amount of depreciation, which one would you purchase, the standard or the deluxe? How does depreciation affect the type of car that you purchase?

  4. Carter Hendrickson
    March 2, 2012 at 5:09 PM

    Whilst I understand the purpose of depreciation, I am struggling to understand what implications depreciation can have on the balance sheet and income statement. Any help will be very appreciated! As much detail as possible but explained simply (Finance is not particularly my strong point) Thanks!

  5. I have a rental property that I purchased for $500,000.00 When i depreciate it in 27.5 years it comes out to about $18,000.00 per year of depreciation. If I keep the property ten years and sell it for $550,000, its considered $50,000.00 profit. For tax purposes, do I have to include the $180,000 of depreciation as capital gain?

  6. dyzer de touchablee
    March 17, 2012 at 6:24 PM

    Along the same lines, the cost principle requires an asset to be initially recorded at cost. Depreciation causes the asset’s book value to decrease over the life of the asset.
    Explain the difference between accumulated depreciation and depreciation expense. What is the purpose of each account?

  7. I am doing an accounting project and have come up with an accumulated depreciation that exceeded depreciation and do not understand why i would greatly appreciate any help offered!

  8. I’m planning on buying a 05-06 Mustang gt within the next two months. The redesigned 2010 models are just hitting the dealers this week. So i know it should be taking a bigger depreciation hit than usual since this year isnt a carryover model. I was just wondering about when it would happen and how much to expect. Is there somewhere i can look online that has forecasted depreciation for cars.

  9. The home is a condo, with a cost of $150,000. Current market value is $100,000. Can depreciation be based on the higher amount?

  10. I purchased equipment for a new business 2 years ago, it wasn’t added to the depreciation schedule in the tax year it was purchased. How do I add this to my current tax filing to take the depreciation without having to amended past tax returns?

  11. 3 partners are transferring their 1/3 share of an apt building into an LLC. The individuals have a different cost basis because of special elections and they each transferred a different cost basis into the apt building via separate 1031’s. Does each member have their own depreciation schedule on their K-1?

  12. Every source of explanation on depreciation – tells me that its not treated as a cash flow expense but do not give an example of how its then summated. Could you do this job?

  13. If the land is assessed at 18955 and the structure 39905, what is the annual depreciation on a income rental house per year? If it is rented out for 1 yr?
    This is for income tax purposes.

  14. what is the depreciation of a car ???
    wat is depreciation?
    how does the depreciation of a car effect its second hand price?

  15. The house has been re-plumbed and 1000 sq ft of new floor tile.

    There has been new carpet as well, but I think that is a 5 yr depreciation.

    And is depreciation figured by dividing the cost among 5 yrs, so a $1000 carpet job would be a $200 deduction every year for 5 years?

    (I am trying to help my 77yr old mother)

  16. What is the purpose of depreciation?

  17. For example, say a business bought an asset that cost $100,000 and it has an economic life of 10 years, does that mean the business gets to write off $10,000 a year for 10 years in taxes, or am I understanding it wrong? Is there a limit to how much a business can write off in depreciation? Thanks

  18. Depreciation of physical assets is the normal wear out of the usefullness of equipments, buildings, structures for economical uses. Example, a factory will need to replace all its machineries and equipments to cope up with new technology for better production….So to avoid deppreciation, we must pursue appreciation so that we can still make use of them. Appreciation includes MAINTENANCE-Repair, Replacement…and INVESTMENT. Can you elaborate more from these topics and sub topics?

  19. […] is third set on Bill of Exchange . After depreciation and ledger, here is another test for topic “Bill of Exchange”  which  is a […]

  20. […] After depreciation and ledger, here is another test for topic “Bill of Exchange”  which  is a written order by the drawer to the drawee to pay money to the payee. A common type of bill of exchange is the cheque  which is also  a bill of exchange drawn on a banker and payable on demand.Bills of exchange are used primarily in international trade, and are written orders by one person to his bank to pay the bearer a specific sum on a specific date. The  bills of exchange were a common means of exchange prior to the advent of paper currency.  […]

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