Depreciation Methods Quiz
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Questions and Answers

What is the depreciable amount of an asset?

  • Residual value of the asset
  • Estimated realizable value of the asset
  • Cost of the asset (correct)
  • Estimated cost of disposal of the asset

    • When does depreciation start for an asset?

  • When the asset is actually used
  • When the asset is classified as 'held for sale'
  • When the asset is available for use (correct)
  • When the asset is purchased

    • What does residual value of an asset represent?

  • Depreciation expense incurred over the useful life
  • Cost of the asset when purchased
  • Estimated value of the asset at the end of its useful life (correct)
  • Market value of the asset at any point in time

    • How is useful life of an asset determined?

    <p>Based on significant managerial judgment</p> Signup and view all the answers

    What does depreciation represent in the income statement?

    <p>The systematic allocation of the depreciable amount of an asset over its useful life.</p> Signup and view all the answers

    In financial statement notes, which item is listed under Note 8?

    <p>Fixed Assets</p> Signup and view all the answers

    What does Note 3 in financial statement notes specifically disclose?

    <p>Interest on Borrowings</p> Signup and view all the answers

    Under which note would one find information about Secured Loan?

    <p>Notes 7</p> Signup and view all the answers

    What does Note 9 in financial statement notes cover?

    <p>Current Assets, Loans and Advances</p> Signup and view all the answers

    Which item is not included in the respective notes as per the provided text?

    <p>'All items in respective Notes are not included' is not included.</p> Signup and view all the answers

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