A. Depletion
B. Inflation
C. Depreciation
D. Deflation
Related Mcqs:
- What is defined as the reduction of the value of certain natural resources such as mines, oil, timber, quarries, etc. due to the gradual extraction of its contents ?
A. Depletion
B. Inflation
C. Depreciation
D. Deflation - What type of depreciation is due to the reduction in the demand for the function that the equipment or asset was designed to render ?
A. Functional depreciation
B. Design depreciation
C. Physical depreciation
D. Demand depreciation - What type of depreciation is due to the reduction of the physical ability of an equipment or asset to produce results ?
A. Functional depreciation
B. Design depreciation
C. Physical depreciation
D. Demand depreciation - What is the reduction in the money value of capital asset is called ?
A. Capital expenditure
B. Capital loss
C. Loss
D. Deficit - As applied to capitalized asset, the distribution of the initial cost by a periodic changes to operation as in depreciation or the reduction of a debt by either periodic or irregular prearranged programs is called ___________________?
A. Annuity
B. Amortization
C. Capital recovery
D. Annuity factor - In what method of computing depreciation where it assumes that the loss in value is directly proportional to the age of the equipment or asset ?
A. Straight line method
B. Sinking fund method
C. Sum-of-year digit method
D. Declining balance method - What refers to the value of an asset which a disinterested third party, different from the buyer and seller, will determine in order to establish a price acceptable to both parties ?
A. Book value
B. Market value
C. Fair value
D. Franchise value - What is the increase in the money value of a capital asset is called?
A. Profit
B. Capital gain
C. Capital expenditure
D. Capital stock - What refers to the present worth of cost associated with an asset for an infinite period of time ?
A. Annual cost
B. Increment cost
C. Capitalized cost
D. Operating cost - Which of the following is an example of intangible asset ?
A. Cash
B. Investment in subsidiary companies
C. Furnitures
D. Patents
