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Management Sciences 5307 MCQs [All-Courses]

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Management Sciences focuses on the planning, organizing, leading, and controlling of resources to achieve organizational goals.This subject is highly important for competitive exams, academic study, and professional careers in the business and public sectors.

All Topics  5307

Which of the following is an external cause of depreciation?
A Routine repair and maintenance
B Misuse
C Obsolescence
D Wear and tear
Correct Answer: Obsolescence
Depreciation is calculated on the____________?
A Cost price of asset
B Market price
C Cost+ Transport+ Installation expenses
D Cost or market values whichever is less
Correct Answer: Cost+ Transport+ Installation expenses
Which of the following statements is correct about Depreciation?
A Depreciation cannot be provided in case of loss in a financial year
B Depreciation is a charge against profit
C Depreciation is provided in the books only when there is profit
D Depreciation is an appropriation of profit
Correct Answer: Depreciation is a charge against profit
In which of the following methods, the cost of the asset is spread over in equal proportion during its useful economic life?
A Straight-line method
B Written down value method
C Units-of-production method
D Sum-of-the years‘-digits method
Correct Answer: Straight-line method
Which of the following factors are primarily considered to determine the economic life of an asset?
A Passage of time, asset usage, and obsolescence
B Tax regulations and SEBI guidelines
C Tax regulations and asset usage
D SEBI guidelines and Asset usage
Correct Answer: Passage of time, asset usage, and obsolescence
The portion of the acquisition cost of the asset yet to be allocated is known as___________?
A Written down value
B
C
D
Correct Answer: Written down value
Depreciation is a process of____________?
A Valuation
B Valuation and allocation
C Allocation
D Appropriation
Correct Answer: Allocation
The main objective of providing depreciation is to?
A Calculate the true profit
B Show the true financial position in the Balance Sheet
C Provide funds for replacement of fixed assets
D Both A. and B. above
Correct Answer: Show the true financial position in the Balance Sheet
Which of the following statements best describes the purpose of depreciation?
A Regular reduction of asset value to correspond to changes in market value as the asset ages
B A process of correlating the market value of an asset with its gradual decline in physical efficiency
C Allocation of cost in a manner that will ensure that Plant and Equipment items are not carried on the Balance Sheet in excess of net realizable value
D Allocation of the cost of an asset to the periods in which services are received from the asset
Correct Answer: Allocation of the cost of an asset to the periods in which services are received from the asset
Which of the following is true with respect to providing depreciation under diminishing balance method?
A The amount of depreciation keeps increasing every year while the rate of depreciation keeps decreasing
B The amount of depreciation and the rate of depreciation decrease every year
C The amount of depreciation decreases while the rate of depreciation remains the same
D The amount of depreciation and the rate of depreciation increases every year
Correct Answer: The amount of depreciation decreases while the rate of depreciation remains the same
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