MULTIPLE-CHOICE QUESTIONS WITH ANSWERS RELATED TO HISTORICAL COST, ACQUISITION COST, BOOK COST, WRITTEN DOWN VALUE AND NET BOOK VALUE

Which of the following represents the original cost of an asset when it was first acquired?
A) Historical cost
B) Acquisition cost
C) Book cost
D) Written down value
E) Net book value
Answer: A) Historical cost

What term refers to the amount paid to obtain an asset, including all expenses necessary to get the asset ready for its intended use?
A) Historical cost
B) Acquisition cost
C) Book cost
D) Written down value
E) Net book value
Answer: B) Acquisition cost

Which of the following terms represents the cost of an asset as recorded on the balance sheet?
A) Historical cost
B) Acquisition cost
C) Book cost
D) Written down value
E) Net book value
Answer: C) Book cost

When the historical cost of an asset is reduced due to depreciation or impairment, what term is used to describe its reduced value?
A) Historical cost
B) Acquisition cost
C) Book cost
D) Written down value
E) Net book value
Answer: D) Written down value

What is calculated as the historical cost of an asset minus its accumulated depreciation?
A) Historical cost
B) Acquisition cost
C) Book cost
D) Written down value
E) Net book value
Answer: E) Net book value

An asset was purchased for Rs. 10,000, and its accumulated depreciation is Rs. 3,000. What is the net book value of the asset?
A) Rs. 10,000
B) Rs. 7,000
C) Rs. 3,000
D) Rs. 13,000
Answer: B) Rs. 7,000

Which of the following represents the fair value of an asset at the time of acquisition?
A) Historical cost
B) Acquisition cost
C) Book cost
D) Written down value
E) Net book value
Answer: B) Acquisition cost

When an asset’s value is reduced due to obsolescence or physical damage, which term describes this reduction?
A) Historical cost
B) Acquisition cost
C) Book cost
D) Written down value
E) Net book value
Answer: D) Written down value

Which of the following represents the original purchase price of an asset?
A) Historical cost
B) Acquisition cost
C) Book cost
D) Written down value
E) Net book value
Answer: B) Acquisition cost

An asset was purchased for Rs. 20,000, and its accumulated depreciation is Rs. 5,000. What is its historical cost?
A) Rs. 25,000
B) Rs. 20,000
C) Rs. 15,000
D) Rs. 5,000
Answer: B) Rs. 20,000

When an asset’s historical cost is adjusted downward to reflect a decrease in its value, what term is used to describe this adjustment?
A) Historical cost
B) Acquisition cost
C) Book cost
D) Written down value
E) Net book value
Answer: D) Written down value

Which of the following terms represents the original cost of an asset without considering any adjustments for depreciation or impairment?
A) Historical cost
B) Acquisition cost
C) Book cost
D) Written down value
E) Net book value
Answer: A) Historical cost

What is the value of an asset after subtracting its accumulated depreciation from its historical cost?
A) Historical cost
B) Acquisition cost
C) Book cost
D) Written down value
E) Net book value
Answer: E) Net book value

An asset was purchased for Rs. 50,000, and its accumulated depreciation is Rs. 10,000. What is its written down value?
A) Rs. 40,000
B) Rs. 50,000
C) Rs. 60,000
D) Rs. 10,000
Answer: A) Rs. 40,000

What term is used to describe the value of an asset as determined by subtracting its accumulated depreciation from its historical cost?
A) Historical cost
B) Acquisition cost
C) Book cost
D) Written down value
E) Net book value
Answer: E) Net book value

Which of the following terms refers to the amount paid to acquire an asset, including any incidental costs such as shipping and installation?
A) Historical cost
B) Acquisition cost
C) Book cost
D) Written down value
E) Net book value
Answer: B) Acquisition cost

An asset was purchased for Rs. 30,000, and its accumulated depreciation is Rs. 8,000. What is its book value?
A) Rs. 38,000
B) Rs. 30,000
C) Rs. 22,000
D) Rs. 8,000
Answer: C) Rs. 22,000

What term refers to the original cost of an asset adjusted for any accumulated depreciation?
A) Historical cost
B) Acquisition cost
C) Book cost
D) Written down value
E) Net book value
Answer: E) Net book value

An asset was purchased for Rs. 25,000, and its accumulated depreciation is Rs. 7,000. What is its historical cost?
A) Rs. 18,000
B) Rs. 25,000
C) Rs. 32,000
D) Rs. 7,000
Answer: B) Rs. 25,000

When an asset’s value is adjusted to reflect its current market value, what term is used to describe this adjustment?
A) Historical cost
B) Acquisition cost
C) Book cost
D) Written down value
E) Net book value
Answer: A) Historical cost

Which of the following terms represents the current value of an asset after adjusting its historical cost for depreciation?
A) Historical cost
B) Acquisition cost
C) Book cost
D) Written down value
E) Net book value
Answer: D) Written down value

An asset was purchased for Rs. 40,000, and its accumulated depreciation is Rs. 15,000. What is its net book value?
A) Rs. 25,000
B) Rs. 40,000
C) Rs. 55,000
D) Rs. 15,000
Answer: A) Rs. 25,000

What term is used to describe the value of an asset as recorded on a company’s balance sheet?
A) Historical cost
B) Acquisition cost
C) Book cost
D) Written down value
E) Net book value
Answer: E) Net book value

An asset was purchased for Rs. 60,000, and its accumulated depreciation is Rs. 20,000. What is its acquisition cost?
A) Rs. 60,000
B) Rs. 40,000
C) Rs. 80,000
D) Rs. 20,000
Answer: A) Rs. 60,000

When an asset’s value is reduced to its salvage value, what term describes this value?
A) Historical cost
B) Acquisition cost
C) Book cost
D) Written down value
E) Net book value
Answer: D) Written down value

An asset was purchased for Rs. 50,000, and its accumulated depreciation is Rs. 12,000. What is its historical cost?
A) Rs. 62,000
B) Rs. 50,000
C) Rs. 38,000
D) Rs. 12,000
Answer: A) Rs. 62,000

Which of the following terms refers to the original cost of an asset adjusted for depreciation or impairment?
A) Historical cost
B) Acquisition cost
C) Book cost
D) Written down value
E) Net book value
Answer: D) Written down value

What term is used to describe the price paid to purchase an asset and make it available for use?
A) Historical cost
B) Acquisition cost
C) Book cost
D) Written down value
E) Net book value
Answer: B) Acquisition cost

An asset was purchased for Rs. 70,000, and its accumulated depreciation is Rs. 25,000. What is its book value?
A) Rs. 95,000
B) Rs. 70,000
C) Rs. 45,000
D) Rs. 25,000
Answer: C) Rs. 45,000

Which of the following terms represents the original cost of an asset without any adjustments?
A) Historical cost
B) Acquisition cost
C) Book cost
D) Written down value
E) Net book value
Answer: A) Historical cost

What term represents the value of an asset as recorded in the accounting records, reflecting its original cost adjusted for depreciation?
A) Historical cost
B) Acquisition cost
C) Book cost
D) Written down value
E) Net book value
Answer: E) Net book value

An asset was purchased for Rs. 80,000, and its accumulated depreciation is Rs. 30,000. What is its acquisition cost?
A) Rs. 80,000
B) Rs. 50,000
C) Rs. 110,000
D) Rs. 30,000
Answer: A) Rs. 80,000

Which of the following terms represents the initial cost incurred to acquire an asset?
A) Historical cost
B) Acquisition cost
C) Book cost
D) Written down value
E) Net book value
Answer: B) Acquisition cost

An asset was purchased for Rs. 90,000, and its accumulated depreciation is Rs. 40,000. What is its historical cost?
A) Rs. 50,000
B) Rs. 90,000
C) Rs. 130,000
D) Rs. 40,000
Answer: C) Rs. 130,000

What term describes the original cost of an asset without considering any subsequent adjustments?
A) Historical cost
B) Acquisition cost
C) Book cost
D) Written down value
E) Net book value
Answer: A) Historical cost

An asset was purchased for Rs. 100,000, and its accumulated depreciation is Rs. 20,000. What is its written down value?
A) Rs. 80,000
B) Rs. 100,000
C) Rs. 120,000
D) Rs. 20,000
Answer: A) Rs. 80,000

Which of the following terms represents the recorded cost of an asset on a company’s balance sheet?
A) Historical cost
B) Acquisition cost
C) Book cost
D) Written down value
E) Net book value
Answer: E) Net book value

An asset was purchased for Rs. 120,000, and its accumulated depreciation is Rs. 50,000. What is its net book value?
A) Rs. 170,000
B) Rs. 120,000
C) Rs. 70,000
D) Rs. 50,000
Answer: C) Rs. 70,000

When an asset’s value is reduced due to impairment, what term is used to describe this reduction?
A) Historical cost
B) Acquisition cost
C) Book cost
D) Written down value
E) Net book value
Answer: D) Written down value

An asset was purchased for Rs. 150,000, and its accumulated depreciation is Rs. 60,000. What is its book value?
A) Rs. 210,000
B) Rs. 150,000
C) Rs. 90,000
D) Rs. 60,000
Answer: C) Rs. 90,000

What term describes the value of an asset on the balance sheet after deducting accumulated depreciation from its historical cost?
A) Historical cost
B) Acquisition cost
C) Book cost
D) Written down value
E) Net book value
Answer: E) Net book value

An asset was purchased for Rs. 200,000, and its accumulated depreciation is Rs. 80,000. What is its acquisition cost?
A) Rs. 200,000
B) Rs. 120,000
C) Rs. 280,000
D) Rs. 80,000
Answer: A) Rs. 200,000

Which of the following terms represents the original cost of an asset without any adjustments for depreciation or impairment?
A) Historical cost
B) Acquisition cost
C) Book cost
D) Written down value
E) Net book value
Answer: A) Historical cost

An asset was purchased for Rs. 300,000, and its accumulated depreciation is Rs. 100,000. What is its written down value?
A) Rs. 200,000
B) Rs. 300,000
C) Rs. 400,000
D) Rs. 100,000
Answer: A) Rs. 200,000

What term describes the original amount spent to acquire an asset, including all costs necessary to get it ready for use?
A) Historical cost
B) Acquisition cost
C) Book cost
D) Written down value
E) Net book value
Answer: B) Acquisition cost

An asset was purchased for Rs. 400,000, and its accumulated depreciation is Rs. 150,000. What is its historical cost?
A) Rs. 250,000
B) Rs. 400,000
C) Rs. 550,000
D) Rs. 150,000
Answer: C) Rs. 550,000

Which of the following terms refers to the value of an asset as recorded on the balance sheet?
A) Historical cost
B) Acquisition cost
C) Book cost
D) Written down value
E) Net book value
Answer: E) Net book value

An asset was purchased for Rs. 500,000, and its accumulated depreciation is Rs. 200,000. What is its net book value?
A) Rs. 700,000
B) Rs. 500,000
C) Rs. 300,000
D) Rs. 200,000
Answer: C) Rs. 300,000

When an asset’s value is reduced due to obsolescence, what term is used to describe this reduction?
A) Historical cost
B) Acquisition cost
C) Book cost
D) Written down value
E) Net book value
Answer: D) Written down value

An asset was purchased for Rs. 600,000, and its accumulated depreciation is Rs. 250,000. What is its book value?
A) Rs. 850,000
B) Rs. 600,000
C) Rs. 350,000
D) Rs. 250,000
Answer: C) Rs. 350,000