Page 43 - IC46 addendum
P. 43
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a. Depreciation accounting.
b. Management accounting.
c. Economic accounting.
d. System accounting.
e. None above.
6. Which is correct in respect of the
depreciation accounting?
a. In depreciation accounting cost refers to
historical cost.
b. Market value has no relevance in the
depreciation accounting.
c. Depreciation is the location of cost of any
asset to the period over which benefits are
obtained.
d. The cost of the asset must be recovered
during the useful life of the set.
e. All are correct.
7. Which of the following are not the
objectives of depreciation?
a. To ascertain the correct cost of production of
goods and services.
b. To ascertain correct profit by reducing cost of
use from income or revenue of business.
c. To make provision for replacement of assets.
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