Page 42 - IC46 addendum
P. 42
General Insurance Accounts (IC-46)
tangible capital assets less salvage over the
estimated useful life of the unit in a systematic
and rational manner.
d. The systematic allocation of the depreciable
amount of an asset over its useful life.
e. Depreciation is the process of allocating cost
of fixed asset over it is estimated useful life
in a rational and systematic manner.
4. Which of the following are the causes of
depreciation:
a. Physical wear and tear caused due to
constant use, strain, intensity of use.
b. Physical deterioration resulting from
atmospheric exposure in certain cases.
c. Passage of time and ageing of asset, even
without use thereof.
d. Depletion of assets and getting exhausted
from continuous extractions.
e. All above.
5. System of accounting, which aims to
distribute the cost or other basic value of
tangible capital assets, less salvage over
the estimated useful life of the unit in
systematic and rational manner is known
as________________.
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