Ch 4: Depreciation and Amortization — Chapter Test
CSEET
📚 Fundamentals of Accounting
📖 Ch.4 — DEPRECIATION AND AMORTIZATION
⭐ V1: Previous Year Question (PYQ)
⚡ Free Mode (Answers Locked)
⏱ Duration: 25 Mins
🎯 Total Marks: 20
Passed at: 10 Marks
Max Attempts: 10
Standard ICSI CSEET objective examination for Depreciation and Amortization. 20 MCQs with instant scoring and detailed explanations.
📑 Exam Questions
20 Questions • Total 20 MarksQuestion 1:
1 Marks
Which of the following best describes the accounting concept of depreciation?
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Question 2:
1 Marks
The primary objective of charging depreciation is to:
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Question 3:
1 Marks
Depreciation is considered a:
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Question 4:
1 Marks
Which of the following causes of depreciation refers to the decline in an asset's value due to new inventions or technological advancements?
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Question 5:
1 Marks
The reduction in the value of natural resources like mines, quarries, or oil wells due to their extraction is termed as:
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Question 6:
1 Marks
An asset's value may decrease simply due to the passage of time, irrespective of its usage. This cause of depreciation is known as:
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Question 7:
1 Marks
Under the Straight Line Method of depreciation, the amount of depreciation charged each year:
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Question 8:
1 Marks
Which depreciation method typically results in a higher depreciation charge in the initial years of an asset's life and a lower charge in later years?
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Question 9:
1 Marks
The Written Down Value Method of depreciation is also commonly known as the:
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Question 10:
1 Marks
A machine was purchased for ₹1,50,000. Its estimated useful life is 5 years, and its residual value is ₹30,000. Using the Straight Line Method, what is the annual depreciation charge?
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Question 11:
1 Marks
An asset was purchased for ₹80,000. Depreciation is charged at 10% per annum using the Written Down Value Method. What will be the depreciation for the second year?
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Question 12:
1 Marks
A company purchased equipment for ₹3,00,000 on October 1, 2022. The useful life is 10 years, and the residual value is nil. If the company uses the Straight Line Method and closes its books on March 31 each year, what is the depreciation for the year ended March 31, 2023?
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Question 13:
1 Marks
When depreciation is charged directly to the asset account (i.e., without maintaining a Provision for Depreciation Account), the journal entry to record depreciation is:
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Question 14:
1 Marks
If a Provision for Depreciation Account (or Accumulated Depreciation Account) is maintained, the journal entry to record depreciation for the year is:
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Question 15:
1 Marks
What is the impact of charging depreciation on the Profit and Loss Account?
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Question 16:
1 Marks
An asset costing ₹2,00,000 has accumulated depreciation of ₹1,20,000. If this asset is sold for ₹70,000, what is the profit or loss on sale?
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Question 17:
1 Marks
The primary purpose of preparing an Asset Disposal Account is to:
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Question 18:
1 Marks
When an asset is sold and a Provision for Depreciation Account is maintained, the accumulated depreciation related to the sold asset is transferred to the:
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Question 19:
1 Marks
A machinery was purchased for ₹3,00,000. After 4 years, its book value was ₹1,80,000. If the machinery is subsequently sold for ₹2,00,000, the result will be a:
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Question 20:
1 Marks
Which of the following statements is NOT true regarding depreciation?
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