CBSE Class 11 Depreciation, Provisions and Reserves Multiple Choice Questions with Answers. MCQ Questions Class 11 Depreciation, Provisions and Reserves with Answers Is Prepared Based on Latest Exam Pattern. Students can solve NCERT MCQ questions Class 11 Depreciation, Provisions and Reserves with Answers to know their preparation level.
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MCQ Questions Class 11 Depreciation, Provisions and Reserves with Answers - Set - 3
Question 1:
The term ____________ is used to show loss in the value of intangible assets.
(a) Amortization
(b) Obsolescence
(c) Depletion
(d) Depreciation
Correct Answer – (A)
Question 2:
Depreciation is calculated from the date of .
(a) Purchase of asset
(b) Receipt of asset at business premises
(c) Asset put to use
(d) Asset installed
Correct Answer – (C)
Question 3:
According to Companies Act, creation of secret reserve is prohibited except in case of ____________ .
(a) Banking, Insurance and Financial companies
(b) Commercial undertakings
(c) Industrial undertakings
(d) NGOs.
Correct Answer – (A)
Question 4:
Which one is not the cause of depreciation?
(a) Efflux of time.
(b) Price fluctuation.
(c) Obsolescence.
(d) Natural wear and tear.
Correct Answer – (B)
Question 5:
As per the Original Cost method which is the correct formula for calculating Annual depreciation?
(a) Depreciation = Cost of asset Scrap value/ Estimated life of asset
(b) Depreciation = Scrap value – Cost of asset / Estimated life of asset
(c) Depreciation = Cost of asset – Market value / Estimated life of asset
(d) Depreciation = Cost of asset – Scrap value/ Market value of asset
Correct Answer – (A)
MCQ Questions Class 11 Depreciation, Provisions and Reserves With Answers
Question 6:
A machine was purchased on 1st April 2020 for Rs.5,00,000 and on 1st October, 2020 a new machine is added for Rs.2,00,000. Calculate the balance of machine account, if depreciation is charged at 20% p.a. on written down value method for the year ending March 31, 2020.
(a) Rs.6,00,000
(b) Rs.5,60,000
(c) Rs.6,60,000
(d) Rs.5,80,000
Correct Answer – (D)
Question 7:
Provision is a _______________ against profits to meet ______________ liabilities.
(a) Charge & unknown
(b) Appropriation & Known
(c) Appropriation & unknown.
(d) Charge & Known
Correct Answer – (A)
Question 8:
According to Companies Act, creation of secret reserve is prohibited except in case of______
(a) Banking, Insurance and Financial companies
(b) Commercial undertakings
(c) Industrial undertakings
(d) NGOs.
Correct Answer – (A)
Question 9:
Which of the following is the cause of depreciation?
(a) By permanent fall in prices
(b) By constant use
(c) By Expiry of time
(d) All of the options
Correct Answer – (D)
Question 10:
If the amount of any known liability cannot be determined with substantial accuracy:
(a) A provision should be created.
(b) A Contingent liability should be created.
(c) A definite liability should be created.
(d) A reserve should be created.
