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 - 5
Question 1:Â
Dividend Equalisation Reserve is :
(a)Â Specific Reserve
(b)Â None of these
(c)Â Secret Reserve
(d)Â General Reserve
Correct Answer – (A)
Question 2:Â
What is the rate of charging depreciation under diminishing method?
(a) 12% p.a.
(b) 15% p.a.
(c) 10% p.a.
(d) Not fixed
Correct Answer – (D)
Question 3:Â
Depreciation charged under diminishing method
(a) Increase every year
(b) Decrease every year
(c) Increase in one year and decrease another year
(d) Same every year
Correct Answer – (B)
Question 4:Â
Depreciation is Â
(a) Revenue Expenditure.
(b) Capital Expenditure.
(c) Deferred Revenue Expenditure.
(d) None of these.
Correct Answer – (A)
Question 5:Â
Which of the following best describes the ‘Depreciation’ ?Â
(a) Valuation of fixed asset at the end of the year
(b) Verification of assets
(c) Allocation of cost of fixed assets over its useful life
(d) Decreasing the market value of asset
Correct Answer – (C)
MCQ Questions Class 11 Depreciation, Provisions and Reserves With Answers
Question 6:Â
Depreciation is charged onÂ
(a) Current Assets.
(b) Fixed Assets.
(c) Total Assets.
(d) Fictitious Assets.
Correct Answer – (B)
Question 7:Â
A Provision isÂ
(a) an appropriation of profits.
(b) a charge against profit.
(c) Can be (a) or (b).
(d) None of these
Correct Answer – (B)
Question 8:Â
Following are the causes of Depreciation except
(a) Natural resources
(b) Fixed asset
(c) Liabilities
(d) Intangible assets
Correct Answer – (A)
Question 9:Â
Which of the following best describes the ‘Depreciation’ ?Â
(a) Valuation of fixed asset at the end of the year
(b) Verification of assets
(c) Allocation of cost of fixed assets over its useful life
(d) Decreasing the market value of asset
Correct Answer – (B)
Question 10:Â
A Ltd. purchased a machine on 1.1.2020 for Rs.1,20,000. Installation expenses were Rs.30,000. Residual value after 5 years Rs.5,000. On 1.7.2020, expenses for repair were incurred to the extent of Rs.2,000. Depreciation is provided @10% p.a. under written down value method. Total depreciation after 2nd year Â
(a) Rs.25,000
(b) Rs. 13,000
(c) Rs. 10,500
(d) Rs.28,500
