Depreciation MCQs Quiz

Take a quick Multiple Choice Questions (MCQs) test about Depreciation. These MCQs can help you to prepare for your exams, interviews and different tests. Just click the “start quiz” button and start Depreciation MCQs quiz.

If you find difficulty in answering these questions, read the ‘Depreciation‘ chapter thoroughly from the ‘Financial Accounting’ section of the website.

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1. The main object of providing depreciation is:


2. Depreciation arises because of:


3. Depreciation is a process of


4. Under the straight-line method of providing depreciation, it:


5. Depreciation to machinery debited to:


6. Total amount of depreciation of an asset cannot exceed its:


7. Depreciation is necessary to calculate:


8. Depreciation of plant will be written on the:


9. The difference between gross investment and net investment is:


10. A depreciation of a currency occurs when:


11. Which of the following item provides the important function of shielding part of income from taxes?


12. The effect of inflation on the price competitiveness of a country’s product may be offset by:


13. Depreciation decreases:


14. Which fo the following would not lead to an increase in net cash flow?


15. In a recession:


16. Which of the following is not a cash outflow?


17. Depreciation arises because of:


18. Under the diminishing balance method of depreciation, it:


19. Under the fixed installment method of depreciation, it is calculated on:


20. Under the diminishing balance method, depreciation is calculated on:


21. Loss on sale of plant and machinery should be written off against:


22. Assets which have a limited useful life are termed as:


23. Process of becoming out of date or obsolete is termed as:


24. Which of the term is used to write off in reference to tangible fixed assets?


25. The economic factor causing depreciation:


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