Under the 'Reducing Balance Method' of depreciation, the asset's value: MCQ with Answer and Explanation

Question
Under the 'Reducing Balance Method' of depreciation, the asset's value:
A. Becomes zero at the end of useful life
B. Never becomes zero
C. Becomes negative
D. Remains constant
Answer: Option B
Solution (By JKSSB Mock Tests)
Under WDV method, the book value never reaches zero, as depreciation is charged on reducing balance.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
Under the Income Tax Act, the 'TDS' on the sale of an immovable property (other than agricultural land) by a resident is governed by which section, and what is the rate?
A. Section 194IA at 10%
B. Section 194C at 1%
C. Section 194IA at 1%
D. Section 194J at 10%
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Correct Answer: Option C

Explanation:
Section 194IA mandates TDS at 1% on the transfer of immovable property (other than agricultural land) if the consideration exceeds ₹50,00,000.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
The 'Rotation of Audit Partners' for listed companies is required every:
A. 5 years
B. 7 years (as per Companies Act 2013, audit firm rotation for certain companies, partner rotation for listed companies)
C. No rotation
D. 10 years
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Correct Answer: Option B

Explanation:
Companies Act 2013 mandates partner rotation for listed companies.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The difference between actual overhead and absorbed overhead is called:
A. Standard cost
B. Waste
C. Under/over absorption
D. Budgeted cost
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Correct Answer: Option C

Explanation:
If absorbed overheads are less than actual, under-absorption; if more, over-absorption.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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