Do you need some help in preparing for your upcoming Accounting exam? We’ve compiled a list of MCQ Questions for Class 11 Accountancy with Answers to get you started with the subject, Depreciation, Provisions and Reserves Class 11 MCQs Questions with Answers. You can download NCERT MCQ Questions for Class 11 Accountancy Chapter 7 Depreciation, Provisions and Reserves with Answers Pdf free download and learn how smart students prepare well ahead. So, ace up your preparation with MCQ on Depreciation, Provisions and Reserves Class 11 Objective Questions.
Depreciation, Provisions and Reserves Class 11 MCQs Questions with Answers
Fill in the correct words
Question 1.
Depreciation is decline in the value of ………………….
Answer
Answer: Assets
Question 2.
Installation, freight and transport expenses are a part of ……………….
Answer
Answer: Acquisition cost
Question 3.
Provision is a ………………. against profit.
Answer
Answer: Charge
Question 4.
Reserve created for maintaining a stable.rate of dividend is termed as ………………….
Answer
Answer: Dividend Equilisation Fund
State whether the following statements are True or False.
Question 1.
Depreciation is a non-cash expense.
Answer
Answer: True
Question 2.
Depreciation is also charged on current assets.
Answer
Answer: False
Question 3.
Depreciation is decline in the market value of tangible fixed assets.
Answer
Answer: False
Question 4.
The main cause of depreciation is wear and tear caused by its usage.
Answer
Answer: True
Question 5.
Depreciation must be charged so as to ascertain true profit or loss of the business.
Answer
Answer: True
Question 6.
Depletion term is used in case of intangible assets.
Answer
Answer: False
Question 7.
Depreciation provides fund for replacement.
Answer
Answer: True
Question 8.
When market value of an asset is higher than book value, depreciation is not charged.
Answer
Answer: False
Question 9.
Depreciation is charged to reduce the value of asset to its market value.
Answer
Answer: False
Question 10.
If adequate maintenance expenditure is incurred, depreciation need not be charged.
Answer
Answer: False
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