Depreciation Pr...

Which of the following statements is/are false?
(1) Depreciation provision is at the discretion of the management.
(2) Depreciation is a charge against profit.
(3) Depreciation is provided only when there is profit.
(4) Depreciation is an appropriation of profit.

A ____________ is a liability which can be measured only by using a substantial degree of estimation.

Which of the following is correct? Depreciable assets are those assets which:
(1) Are expected to be used for more than one accounting period.
(2) Have a limited useful life
(3) Are held for the purpose of re-sale
(4) None of these

The amount of depreciation remains constant year after year under ____________.

Obsolescence of a depreciable asset may be caused by
I. Technological changes
II. Improvement in the production method
III. Legal or other restrictions

Interest debited to asset account in which method of depreciation?

An asset was purchased for Rs. $$12,500$$ and under the reducing balance method $$20$$ percent of the reducing value of the asset is written off each year. What is the value of the asset at the end of three years?

If the equipment account has a balance of Rs. $$22,500$$ and the accumulated depreciation account has a balance of Rs. $$14,000$$, the book value of the equipment is __________.

The provision for bad debts is made by crediting __________.

Which of the following is/are advantage(s) of the equal installment method?
1. Easy to understand; calculation simple;
2. Decreasing depreciation charges cancel out increasing repair charges;
3. No re-calculation necessary when further assets are purchase.