Practice Pakistan's most useful MCQs for competitive exams

What are the common methods of computing depletion charge ?

• (A)  Rational method and irrational method
• (B)  Conservative method and conventional method
• (C)  Unit method and percentage method
• (D)  Discrete method and depletion allowance method

Answer

Submitted By :Ali Uppal

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

Answer

Submitted By :Ali Uppal

The functional depreciation is sometimes called ____________________?

• (A)  Demand depreciation
• (B)  Adolescence
• (C)  Life depreciation
• (D)  Failure depreciation

Answer

Submitted By :Ali Uppal

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

Answer

Submitted By :Ali Uppal

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

Answer

Submitted By :Ali Uppal

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

Answer

Submitted By :Ali Uppal

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

Answer

Submitted By :Ali Uppal

The process of determining the value or worth of a physical property for specific reason is called ____________________?

• (A)  Investment
• (B)  Valuation
• (C)  Economy
• (D)  Depletion

Answer

Submitted By :Ali Uppal

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

Answer

Submitted By :Ali Uppal

The first cost to be incurred if the piece of equipment now in place had been bought for a second hand dealer or some other business is called ____________________?

• (A)  Material cost
• (B)  Fixed cost
• (C)  First cost
• (D)  In-place value

Answer

Submitted By :Ali Uppal