Match the following. I. Depreciation II. Unexpired expenses III. Interest on capital IV. Manager’s commission 1. Shown on assets side 2. Shown on debited side 3. Deducted from values of assets 4. Shown as addition to capital
[I-3, II-1, III-4, IV-2]
The correct answer is option 4: - I. Depreciation: Deducted from values of assets (I-3) - II. Unexpired expenses: Shown on assets side (II-1) - III. Interest on capital: Shown as addition to capital (III-4) - IV. Manager’s commission: Shown on debited side (IV-2)
Important Questions from Depreciation, Reserve & Provision
Which of the following statement is FALSE in relation to the term depreciation?
________ refers to writing off the cost of intangible assets like patents, copyrights, trademarks, franchises, and goodwill which have utility for a specified period of time.
Which of the following statement is FALSE?
Which of the following statement is NOT TRUE in regard to reserve and provision?
Provision is _______ against profit.
