Question No: 1 ( Marks: 1 ) - Please choose one
Particulars Rs.
Opening written down value of machine 3,75,000
Cost of machine 50,000
Depreciation during the year 11,000
Closing written down value (WDV) of the Machines ?

► Rs. 4, 14,000
► Rs. 4, 25,000
► Rs. 3, 86,000
► Rs. 61,000

Question No: 2 ( Marks: 1 ) - Please choose one
Particulars Rs.
Opening written down value of machine 1,00,000
Cost of new machine purchased during the year 50,000
Depreciation during the year 21,000
Closing written down value (WDV) ?

► Rs. 1, 29,000
► Rs. 1, 50,000
► Rs. 1, 21,000
► Rs. 71,000 

Question No: 3 ( Marks: 1 ) - Please choose one
Firms charge depreciation each year:

► To ensure there is enough money in the firm to replace the asset
► To spread the cost of the asset over its working life
► To reduce the profit and thus reduce the dividends they can pay to share holders
► Because the law states they must be reduced

Question No: 4 ( Marks: 1 ) - Please choose one
Depreciation arises because of:

► Fall in the market value of an asset
► Fall in the value of money
► Physical wear and tear
► All of the given options 

Question No: 5 ( Marks: 1 ) - Please choose one
The assets which have a limited useful life are termed as:

► Limited assets
► Depreciateable assets
► Unlimited assets
► None of the given options

Question No: 6 ( Marks: 1 ) - Please choose one
Accountancy covers which of the following area(s):

► Book-keeping
► Accounting
► Auditing 
► All of the given options

Question No: 7 ( Marks: 1 ) - Please choose one
Bank Reconciliation Statement is prepared by:

► Bankers
► Accountant of the business
► Statutory auditor
► Manger

Question No: 8 ( Marks: 1 ) - Please choose one
___________ is the detail of transaction in one's account provided by the bank.

► Bank statement 
► Bank reconciliation statement
► Income statement
► Financial statement

Question No: 9 ( Marks: 1 ) - Please choose one
If you start with cash book favorable balance in Bank Reconciliation Statement, which item will be added?
► Cheque deposited but not credited by the bank
► Cheques omitted to be deposited into bank
► Any amount directly collected by bank on behalf of customer but not recorded in cash book
► Debit side of cash book was overcast

Question No: 10 ( Marks: 1 ) - Please choose one
_________ is the amount for which an asset could be exchanged between knowledgeable willing parties in an arm’s length transaction.
► Present value
► Fair value
► Book value
► Residual value

Question No: 11 ( Marks: 1 ) - Please choose one
Consider the following:

Beginning inventory 10 units @ Rs. 10 per unit
First purchase 35 units @ Rs. 11 per unit
Second purchase 40 units @ Rs. 12 per unit
Third purchase 20 units @ Rs. 13 per unit
Eighty-five units were sold, what is the value of the ending inventory using the FIFO method of inventory costing? 
► Rs.260 
► Rs.232 
► Rs.284 
► Rs.268 

Question No: 12 ( Marks: 1 ) - Please choose one
If, Cost of machine = Rs.400, 000
Useful life = 5 years
Rate of depreciation= 40%
The book value of machine after one years using diminishing balance method is ?



► Rs.86, 400
► Rs. 1, 44,000
► Rs. 2, 40,000
► Rs. 51,840