Section A: Multiple Choice Questions. (4X0.5Mark=2Marks) 1. The amount which can be expected to be realized upon retirement of an asset: a. Book Value b. Scrap Value. c. Depreciable Value d. None of the above 2. Under the Declining Balance method of providing depreciation it: a. Increase every year b. Decrease every year c. Remain constant every year d. None of the above 3. Consider the following information: . Cost of machine 200,000 Salvage value of machine OMR 30,000 Number of hours the machine has been used during current period: 3000 hours Estimated life time hours the machine will be used: 40,000 hours Estimated useful life of the machine in years: 16 years Based on the above information, the depreciation on machine for current period under unit of production is? a. OMR 12,750 c. OMR 13,750 b. OMR 11,750 d. None of the above 4. Cost of fixed assets minus Accumulated depreciation = Residual value b. Book Value Depreciable cost Accumulated depreciation