## Depreciation Provisions and Reserves Class 11 MCQ | Accountancy Quiz for Class 11 and Other Competitive Exams

Depreciation Provisions and Reserves Class 11 MCQ: Check the below NCERT MCQ Questions for Accountancy Depreciation Provisions and Reserves Class 11 MCQ with Answers Pdf free download. Depreciation Provisions and Reserves Class 11 MCQ  Questions for Accountancy with Answers were prepared based on the latest exam pattern. We have provided Depreciation Provisions and Reserves Class 11 Questions with Answers to help students understand the concept very well.

## Depreciation Provisions and Reserves Class 11 MCQ

1. Under which depreciation method does the amount of depreciation expenses remains the same throughout the useful life of a fixed asset?
(a) Reducing balance method
(b) Number of units produced method
(c) Machine hours method
(d) Straight-line method

View Answer

(d) Straight-line method

2. Depreciation helps in determining ________.
(a) Increases the value of the asset
(b) Revenue generation
(c) Increase the burden of tax
(d) Accurate level of profit

View Answer

(d) Accurate level of profit

3. Depreciation charged under diminishing method ________.
(a) Decrease every year
(b) Increase in one year and decrease another year
(c) Same every year
(d) Increase every year

View Answer

(a) Decrease every year

4. Every fixed asset loses its value due to use or other reasons. This decline in the value of assets is known as ________.
(a) Provisions
(b) Depreciation
(c) Devaluation
(d) Amortisation

View Answer

(b) Depreciation

5. At the end of the year, the depreciation account is transferred to _______.
(a) Trading account
(b) Profit and loss appropriation account
(c) Profit and loss account
(d) Balance sheet

View Answer

(c) Profit and loss account

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