81. What from the following is NOT a capital expense?
(A) Purchase of property
(B) Purchase of office equipment
(C) Replacement of a vehicle,
(D) Repair of a vehicle

82. An item of equipment cost $300,000 and has a residual value of $50,000 at the end of its expected useful life of four years. What is the depreciable amount?
(A) $50,000
(B) $250,000
(C) $300,000
(D) $350,000

83. Cash invested in the business is known as
(A) current asset
(B) fixed asset
(C) liabilities
(D) capital

84. Expenditures which provide benefit in the future are called
(A) current expenditure
(B) capital expenditure
(C) outstanding expenditure
(D) revenue expenditure

85. The expected disposal value of the asset (after deducting disposal costs) at the end of its expected useful life is called
(A) residual value
(B) net book value
(C) depreciation
(D) substance over form

86. The figure that appears in the statement of financial position, after the depreciation, is known as
(A) depreciation
(B) substance over form
(C) residual value
(D) net book value

87. Which from the following asset is NOT depreciated?
I. Advances
II. Land
III. Machinery
(A) I only
(B) II only
(C) I and II
(D) II and III

88. Depreciation is normally charged as

(A) payable
(B) receivable
(C) expenses
(D) advances

89. A company purchases a non-current asset in Year 1 for $90,000. The depreciation charge is $15,000. What net book value would be recorded in financial position statement (or balance sheet) at the end of Year-2?
(A) $75,000
(B) $60,000
(C) $30,000
(D) $15,000

90. Raw materials that are remaining at the end of the reporting period are treated as
(A) liabilities
(B) expenses
(C) fixed assets
(D) current assets

NOTE
IF YOU THINK ANY OF THE MCQ ABOVE IS WRONG.
PLEASE COMMENT WITH CORRECT ANSWER AND ITS DETAIL EXPLANATION IN COMMENT BOX.
THANK YOU

This Post Has One Comment

  1. Hello 🙂 I just want to tell you that I am all new to blogging and certainly savored your web page. Very likely I’m want to bookmark your blog post . You definitely come with terrific articles and reviews. Thanks a bunch for sharing your web site.

Leave a Reply