The term 'Amortization' refers to: MCQ with Answer and Explanation

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The term 'Amortization' refers to:

A. Depreciation of tangible assets

B. Systematic write-off of intangible assets

C. Obsolescence of machinery

D. Depletion of natural resources

Answer: Option B

Solution (By JKSSB Mock Tests)

Amortization is the process of systematically writing off the cost of an intangible asset over its useful life.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

The 'National Financial Reporting Authority' (NFRA) was established under:

A. Income Tax Act

B. SEBI Act

C. Companies Act, 2013

D. Chartered Accountants Act

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Correct Answer: Option C

Explanation:
NFRA was constituted under Section 132 of Companies Act, 2013 to oversee audit quality.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

A 'Flexible Budget' is also known as:

A. Master budget

B. Cash budget

C. Sliding scale budget

D. Fixed budget

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Correct Answer: Option C

Explanation:
Flexible budget changes with activity levels, hence also called variable or sliding scale budget.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3

After reissue of forfeited shares, the balance in 'Shares Forfeited Account' is transferred to:

A. Profit & Loss

B. Capital Reserve

C. Securities Premium

D. General Reserve

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Correct Answer: Option B

Explanation:
Any profit on reissue (excess of forfeited amount over reissue loss) is transferred to Capital Reserve.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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