Which of the following enhances the earning capacity of an asset?

Related Mcqs:

1. Which of the following statements is true with regard to written down value method of depreciation?
   i. The rate at which the asset is written off reduces year after year
   ii. The amount of depreciation provided reduces from year to year
   iii. The rate of depreciation as well as the amount of depreciation reduce year after year
   iv. The value of the asset gets reduced to zero over a period of time

   A. Only (i) above
   B. Only (ii) above
   C. Both (i) and (ii) above
   D. (i),(ii) and (iii) above

2. An asset must be _______ by the business to be shown as an asset in its “balance sheet”

   A. Possessed
   B. Owned
   C. Controlled
   D. Used

3. A company is currently operating at 80% capacity level. The production under normal capacity level is 1,50,000 units. The variable cost per unit is ` 14 and the total fixed costs are ` 8,00,000. If the company wants to earn a profit of ` 4,00,000, then the price of the product per unit should be

   A. 37.50
   B. 38.25
   C. 24.00
   D. 35.00

4. An asset posses which of the following?

   A. Future economic benefits for the business
   B. All kind of benefits for the business
   C. Expenses for the business
   D. Merits and Demerits for the business

5. Identify the asset from the following:

   A. Cash and cash equivalent
   B. Creditors
   C. Notes payable
   D. Bank loan

6. Which of the following factors are primarily considered to determine the economic life of an asset?

   A. Passage of time, asset usage, and obsolescence
   B. Tax regulations and SEBI guidelines
   C. Tax regulations and asset usage
   D. SEBI guidelines and Asset usage

7. In which of the following methods, the cost of the asset is spread over in equal proportion during its useful economic life?

   A. Straight-line method
   B. Written down value method
   C. Units-of-production method
   D. Sum-of-the years‘-digits method

8. Which of the following are/is not a fixed asset?

   A. Stock
   B. Vehicle
   C. Fixed deposit in bank
   D. Both A. and C. above

9. Which of the following are/is a current asset?

   A. Sundry Debtors
   B. Stock
   C. Prepaid insurance
   D. All of A. B. and C. above

10. Which of the following is not an intangible asset?

    A. Trade mark
    B. Franchise
    C. Accounts Receivable
    D. Secret Profit