Accounting MCQs Questions (p#2)

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Accounting MCQs Questions(11-20)

11. Accounting process of allocation cost of intangible assets is called_________
(A) Amortization
(B) Depletion
(C) Going Concern
(D) Residual Value

12. process of recording consumption of natural resources (or wasting assets) is called_________.
(A) Amortization
(B) Depletion
(C) Going Concern
(D) Residual Value

13. The concept that the enterprise will continue in a foreseeable future is called_______
(A) Amortization
(B) Depletion
(C) Going Concern
(D) Residual Value

14. What is NOT a capital expense?_______
(A) Purchase of property
(B) Purchase of office equipment
(C) Replacement of a vehicle,
(D) Repair of a vehicle

15. An item of equipment cost $300,000 and has a residual value of $50,000 at the end of its expected useful life of four years. What is the depreciable amount?_______
(A) $50,000
(B) $250,000
(C) $300,000
(D) $350,000

16. The expected disposal value of the asset (after deducting disposal costs) at the end of its expected useful life is called______
(A) residual value
(B) net book value
(C) depreciation
(D) substance over form

17. The figure that appears in the statement of financial position, after the depreciation, is known as_______
(A) depreciation
(B) substance over form
(C) residual value
(D) net book value

18. Which asset is NOT depreciated?_______
I. Advances
II. Land
III. Machinery
(A) I only
(B) II only
(C) I and II
(D) II and III

19. Depreciation is normally charged as________
(A) payable
(B) receivable
(C) expenses
(D) advances

20. A company purchases a non-current asset in Year 1 for $90,000. The depreciation charge is $15,000. What net book value would be recorded in financial position statement at the end of Year-2?
(A) $75,000
(B) $60,000
(C) $30,000
(D) $15,000

 

ANSWERS: ACCOUNTING MCQS p2

11. (A)  Amortization
12. (B)   Depletion
13. (C)   Going Concern
14. (D)   Repair of a vehicle
15. (B)   $250,000
16. (A)   residual value
17. (D)   net book value
18. (C)   I and II
19. (C)   expenses
20. (B)   $15,000