Depreciation, Provisions and Reserves

This set of MCQs helps students to learn about various important things such as, explain the meaning of depreciation and distinguish it from amortisation and depletion, state the need for charging depreciation and identify its causes, compute depreciation using straight line and written down value methods, record transactions relating to depreciation and disposition of assets, explain the meaning and purpose of creating provisions and reserves, distinguish between reserves and provisions, explain the nature of various types of provisions and reserves including secret reserve.