The portion of the acquisition cost of the asset yet to be allocated is known as___________?

Related Mcqs:

1. 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

2. 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

3. 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

4. On scrutiny of a firm‘s books of accounts, it was observed that the following errors have occurred in the previous years but have not yet been rectified.

   i. Depreciation for 2011-2012- 7,000 understated
   ii. Accrued expenses as at March 31, 2013 – 10,000 understated
   The impact of this on the reported net income for the year ending March 31, 2013 is

   A. 7,000 Overstated
   B. 10,000 Overstated
   C. 17,000 Understated
   D. 17,000 Overstated

5. ___________ are checks that are issued by the business but not yet presented to bank

   A. Uncollected checks
   B. Uncredited checks
   C. Outstanding checks
   D. Bounced checks

6. _________ Checks that are presented to bank but not yet credited by the bank.

   A. Unpresented checks
   B. Uncredited checks
   C. Outstanding checks
   D. Bounced checks

7. Obligation of the Business are known as___________?

   A. Liabilities
   B. Revenues
   C. Expenses
   D. Assets

8. The total cost incurred in the operation of a business undertaking other than the cost of manufacturing and production is known as________?

   A. Direct cost
   B. Variable cost
   C. Commercial cost
   D. Conversion cost

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

   A. Increase in working capacity of an asset
   B. Reduction in operating costs
   C. Replacing damaged parts of an asset
   D. Both A and C above

10. If the asset turnover and profit margin of a company are 1.85 and 0.35 respectively, the return on investment is.

    A. 0.65
    B. 0.35
    C. 1.50
    D. 5.29