Depreciation

JKSSB Panchayat Account Assistant · Accountancy & Finance · 17 practice questions with answers and explanations: 5 Easy, 8 Medium, 4 Hard.

Sample questions

Sample Easy question 1

Depreciation is charged on which type of asset?

  1. Fixed tangible assets
  2. Current assets
  3. Cash and bank balances
  4. Intangible goodwill only
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Answer: A. Depreciation applies to fixed tangible assets like machinery, buildings, and furniture.

Sample Medium question 2

Under the Written Down Value (Diminishing Balance) Method, depreciation is calculated on which base?

  1. The book value at the beginning of each year
  2. The original cost every year
  3. The scrap value only
  4. The market value each year
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Answer: A. WDV method applies a fixed rate to the reducing book value each year, not the original cost.

Sample Hard question 3

Which of the following is NOT a cause of depreciation?

  1. A sudden increase in market demand for the product
  2. Wear and tear
  3. Obsolescence
  4. Passage of time
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Answer: A. Depreciation results from physical wear, obsolescence, or time — not from changes in product demand.

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