Management Sciences MCQs – Page 547

✅ C. Obsolescence

Option A : Routine repair and maintenance Option B : Misuse Option C : Obsolescence Option D : Wear and tear Correct Answer : Obsolescence Read more

✅ B. Land

Option A : Building Option B : Land Option C : Plant and Machinery Option D : Office equipment Correct Answer : Land Read more

✅ A. Inventory system

Option A : Inventory system Option B : Survey system Option C : Annuity system Option D : Insurance Correct Answer : Inventory system Read more

✅ D. Allocation of the cost of an asset to the periods in which services are received from the asset

Option A : Regular reduction of asset value to correspond to changes in market value as the asset ages Option B : A process of correlating the market value of an asset with its gradual decline in physical efficiency Option C : Allocation of cost in a manner that will ensure that Plant and Equipment items are not carried on… Read more

✅ B. Show the true financial position in the Balance Sheet

Option A : Calculate the true profit Option B : Show the true financial position in the Balance Sheet Option C : Provide funds for replacement of fixed assets Option D : Both and Correct Answer : Show the true financial position in the Balance Sheet Read more

✅ C. Allocation

Option A : Valuation Option B : Valuation and allocation Option C : Allocation Option D : Appropriation Correct Answer : Allocation Read more

✅ A. Written down value

Option A : Written down value Option B : Accumulated value Option C : Salvage value Option D : Residual Value Correct Answer : Written down value Read more

✅ A. The rate at which the asset is written off reduces year after year

Option A : The rate at which the asset is written off reduces year after year Option B : The amount of depreciation provided reduces from year to year Option C : The rate of depreciation as well as the amount of depreciation reduce year after year Option D : The value of the asset gets reduced to zero over… Read more

✅ A. Depreciation

Option A : Depreciation Option B : Physical deterioration of the asset Option C : Decrease in market value of the asset Option D : Valuation of an asset at a point of time Correct Answer : Depreciation Read more

✅ A. Passage of time, asset usage, and obsolescence

Option A : Passage of time, asset usage, and obsolescence Option B : Tax regulations and SEBI guidelines Option C : Tax regulations and asset usage Option D : SEBI guidelines and Asset usage Correct Answer : Passage of time, asset usage, and obsolescence Read more

✅ A. Straight-line method

Option A : Straight-line method Option B : Written down value method Option C : Units-of-production method Option D : Sum-of-the years-digits method Correct Answer : Straight-line method Read more

✅ B. Depreciation is a charge against profit

Option A : Depreciation cannot be provided in case of loss in a financial year Option B : Depreciation is a charge against profit Option C : Depreciation is provided in the books only when there is profit Option D : Depreciation is an appropriation of profit Correct Answer : Depreciation is a charge against profit Read more

✅ A. 20,000 Loss

Option A : 20,000 Loss Option B : 20,000 Profit Option C : 10,000 Loss Option D : 10,000 Profit Correct Answer : 20,000 Loss Read more

✅ B. Loss of 22,000

Option A : Loss of 20,000 Option B : Loss of 22,000 Option C : Loss of 11,000 Option D : Profit of 11,000 Correct Answer : Loss of 22,000 Read more

✅ C. The amount of depreciation decreases while the rate of depreciation remains the same

Option A : The amount of depreciation keeps increasing every year while the rate of depreciation keeps decreasing Option B : The amount of depreciation and the rate of depreciation decrease every year Option C : The amount of depreciation decreases while the rate of depreciation remains the same Option D : The amount of depreciation and the rate of… Read more

✅ D. To bring out the reasons for the difference between the Balance as per Cash Book and the Balance as per Bank Statement

Option A : To rectify the mistakes in the Cash Book Option B : To arrive at the Bank Balance Option C : To arrive at the Cash Balance Option D : To bring out the reasons for the difference between the Balance as per Cash Book and the Balance as per Bank Statement Correct Answer : To bring out… Read more

✅ D. Cash as per cash book with bank balance as per bank pass book

Option A : Trial balance Option B : Cash book Option C : Bank A/c Option D : Cash as per cash book with bank balance as per bank pass book Correct Answer : Cash as per cash book with bank balance as per bank pass book Read more

✅ A. Cash book

Option A : Cash book Option B : Trial balance Option C : Auditors report Option D : None of these Correct Answer : Cash book Read more

✅ D. All the three

Option A : It bring out any errors committed in preparation of Cash book / Bank Pass Book Option B : Highlights under delay in clearance of cheques deposited but not credited Option C : Help know actual bank balance Option D : All the three Correct Answer : All the three Read more

✅ B. Bank Overdraft

Option A : Surplus cash Option B : Bank Overdraft Option C : Terms deposits with bank Option D : None of these Correct Answer : Bank Overdraft Read more