A. Functional depreciation
B. Design depreciation
C. Physical depreciation
D. Demand depreciation
Related Mcqs:
- 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 do you call the after-tax present worth of all depreciation effects over the depreciation period of the asset ?
A. Asset recovery
B. Depreciation recovery
C. Period recovery
D. After-tax recovery - ABC Corporation makes it a policy that for any new equipment purchased, the annual depreciation cost should not exceed 20% of the first cost at any time with no salvage value. Determine the length of service life necessary if the depreciation used is the SYD method ?
A. 7 eyars
B. 8 years
C. 9 years
D. 10 years - 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 - 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 - The unrecovered depreciation which results due to poor estimates as to the life of the equipment is called _____________________?
A. Sunk cost
B. Economic life
C. In-place value
D. Annuity - What is defined as the reduction or fall of the value of an asset due to constant use and passage of time ?
A. Depletion
B. Inflation
C. Depreciation
D. Deflation - In what method of computing depreciation where it assumes that the annual cost of depreciation is a fixed percentage of the book value at the beginning of the year ?
A. Straight line method
B. Sinking fund method
C. Sum-of-year digit method
D. Declining balance method - An asset is purchased for P 9,000.00. Its estimated economic life is 10 years after which it will be sold for P 1,000.00. Find the depreciation in the first three years using sum-of-years digit method____________________?
A. P 3,279.27
B. P 3,927.27
C. P 3,729.27
D. P 3,792.72 - In computing depreciation of an equipment, which of the following represents the first cost ?
A. The original purchase price and freight charges
B. Installation expenses
C. Initial taxes and permit fees
D. All of the above
