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51. 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

52. Which of the following statements is correct about Depreciation?

A. Depreciation cannot be provided in case of loss in a financial year
B. Depreciation is a charge against profit
C. Depreciation is provided in the books only when there is profit
D. Depreciation is an appropriation of profit

53. Depreciation is calculated on the____________?

A. Cost price of asset
B. Market price
C. Cost+ Transport+ Installation expenses
D. Cost or market values whichever is less

54. Which of the following is an external cause of depreciation?

A. Routine repair and maintenance
B. Misuse
C. Obsolescence
D. Wear and tear

55. Which of the following is not depreciated?

A. Building
B. Land
C. Plant and Machinery
D. Office equipment

56. ____________is also known as Appraisal system of depreciation?

A. Inventory system
B. Survey system
C. Annuity system
D. Insurance

57. Bad debts recovered account will be transferred to______________?

A. Debtor‘s Account
B. Profit and Loss Account
C. Provision for Doubtful Debt Account
D. Either B or C above

58. The entry for creating a Provision for bad debts is_____________?

A. Debit Provision for Bad Debts A/c and credit Debtors A/c
B. Debit Debtors A/c and credit Provision for Bad Debts A/c
C. Debit Provision for Bad Debts A/c and credit Profit & Loss A/c
D. Debit Profit and Loss A/c and credit Provision for Bad Debts A/c.

59. When a person purchasing goods on credit he becomes a_________in the books of the seller?

A. Debtor
B. Creditor
C. Defaulter
D. Offender

60. Cost of goods sold excludes___________?

A. Opening Stock
B. Carriage inward
C. Wages & Salary
D. Postage & Stamps