Objective type questions from Part D The accounting entry when depreciation is incurred: debited. In which depreciation method, the same amount of depreciation is charged over the entire asset ife? 1 is credited 2. 3. In this method of Depreciation charge varies each period in proportion to the change in level of activity. Name the method. . 4 Depreciation expense decreases at a constant rate as the life of an asset progresses What is the formula used in straight line depreciation method? 5 Which method of depreciation would ensure that higher depreciation is charged in the earlier years of its operation? 6 7. Percentage of useful life that is consumed in a single accounting period is called 8. The estimated time period that the asset is expected to be used is known as 9. In reducing balance method, rate of depreciation is defined according to the estimated patterm of an asset's use over its life term- true / false 10. What is the formula that can be used to calculate straight line depreciation for the current and subsequent accounting periods in case of a revision in estimates of useful life? 11. In case of a revision in the depreciation charge due to a change in estimates, Depreciation already charged in prior periods is not revised - true / false 12. Formula for calculating Depreciation under reducing balance method 13. This depreciation method can be used only if you can accurately measure the patternm of economic benefits expected to be derived over an asset's useful life. Name the method. 14. The loss/gain from sale of an asset is reflected in which financial statement? Balance sheet/ income statement 15. Accumulated depreciation is not used in calculation of book value of an asset-true / false 16. When an asset is sold, the value of the fixed asset is subtracted from the total fixed assets in the balance sheet-true / false 17. Depreciation accumulated on the asset is removed from the balance sheet when the asset is sold- true /false 18. Suggest what method of depreciation to use in order to depreciate computer equipment. 19. Under reducing balance method, depreciation expense in year 2 is less / more than year 1