Accounting Multiple Choice Question – 16 May 2020

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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In the accounts of a limited company, the balance on a provision for depreciation account . . . ?

Select ONE answer:

  1. is shown under the heading ‘current liabilities’.
  2. is shown under the heading ‘capital and reserves’.
  3. is shown as an appropriation of profit.
  4. is deducted from the cost or valuation of the related fixed assets.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct – Fixed assets are shown in the balance sheet at their net book value i.e. their cost or valuation less the cumulative provision for depreciation on them.

 

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