Under the straight-line method of depreciation, the amount of depreciation is: MCQ with Answer and Explanation

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Under the straight-line method of depreciation, the amount of depreciation is:

A. Increases every year

B. Constant every year

C. Decreases every year

D. Variable every year

Answer: Option B

Solution (By JKSSB Mock Tests)

Under the straight-line method, depreciation is calculated on the original cost of the asset, making the depreciation amount constant every year.

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

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Question #1

Under 'Ind AS 21', foreign currency monetary items are translated at:

A. Opening rate

B. Closing rate

C. Average rate

D. Historical rate

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Correct Answer: Option B

Explanation:
Monetary items are translated at the closing rate at the reporting date.

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

Question #2

The 'Discount Rate' for measuring defined benefit obligation under Ind AS 19 is determined by reference to:

A. Incremental borrowing rate

B. Market yields on government bonds at the reporting date

C. Expected return on plan assets

D. Fixed rate

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Correct Answer: Option B

Explanation:
The discount rate reflects the time value of money; usually based on high-quality corporate bonds or government bonds.

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Question #3

In the context of taxation, the term 'Input Tax Credit' (ITC) is associated with:

A. Corporate Tax

B. GST

C. Income Tax

D. Customs Duty

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Correct Answer: Option B

Explanation:
Input Tax Credit (ITC) is a mechanism under GST that allows businesses to claim credit for the tax paid on inputs against the tax payable on output.

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

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