Cash received from debtors would be deemed as___________of funds.

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

Under the written down value method of depreciation, the rate of percentage of depreciation is fixed, but it applies to the value of the asset at which the asset stands in the books in the beginning of the year. Therefore, the amount of depreciation decreases as the fixed rate of depreciation is charged on written down values of the asset.

Liabilities are which of the following?

A. Resources
B. Obligations
C. Future benefits
D. Expenses

Recent developments have made much of a company‘s inventory obsolete. This obsolete inventory should be?

A. Written down to zero or its scrap value
B. Shown in the Balance Sheet at its replacement cost
C. Shown in the Balance Sheet at cost, but classified as a non-current asset
D. Carried in the accounting records at cost until it is sold

Which of the following is a Nominal A/c ?

A. Outstanding Salary A/c
B. Rent A/c
C. SBI A/c
D. Debtors A/c