Fixed Assets

  Home  Business and Economy  Fixed Assets


“Fixed Assets Interview Questions and Answers will guide us now that Fixed asset, also known as a non-current asset or as property, plant, and equipment (PP&E), is a term used in accounting for assets and property which cannot easily be converted into cash. So learn more about the Fixed Assets with the help of this Fixed Assets Interview Questions with Answers guide and get a better job or get a preparation for a job interview of Fixed Assets based job”



46 Fixed Assets Questions And Answers

41⟩ Explain how to determine whether an expense is an asset or not? When you receive an invoice that shows that the company has purchased a tool or something, what makes you think this thing is an asset or its an expense. Is it the price of it or what?

The expenses can only be capitalised in the following circumstances:

1. It must be related with the asset.

2. It must be essential to make the asset in working condition.

3. It must be above the capitalisation limit as per the prescribed policies.

 129 views

42⟩ what is fectitious assets? what is ment by cash book and day book and general leder? Employee salary deductions under section of the income tax act of india?

Fictitious Assets :These are the assets which can not be seen, but exist in the business.

ex: Goodwill, patents, etc

Cash Book: It is one of the Subsidiary Book which is generally used by any business organisation to record all the cash transactions which helps to know the cash position as and when desired. In it all the entries will be recorded. Generally the cash book can be balanced once in a month.

Day Cash book: It is the book maintained by accountant to record all the cash transactions with takes place during the day (it can be receipt or payment). At later stage these will be posted into cash book.

General Ledger : While preparing Trial balance to check the arithmetical accuracy, some times the debit and credit balances may not tally, to make the process easy the accountant will open an account named General Ledger to post the entries which r causing balancing problem.

straight line method is calculated based on the original cost and year by year the dep will remain the same, but in the nbv the dep we will calculate based on the original cost.

 158 views

43⟩ Do you know how many types of fixed assets?

There are two types of fixed assets tangible and intangible assets.

Tangible assets: A physical asset whose presence can be felt and touched.

Ex. Furniture and Fixtures, Plant and Machinery

Intangible Assets: Assets whose presence cannot be felt or touched.

Ex: Goodwill, patents, trademarks.

 155 views

44⟩ Explain what is Asset life cycle?

Asset life cycle means the cycle in which the asset canprovide or help provide futureeconomic benefits. Each asset has a specific life cycle, it can be measured by evaluating the asset itself.

 140 views

45⟩ Tell me which depreciation is superior WDV or SLM and Why?

We can decided which method of deprecation is best on the basis of usefulness (benefits) provided by the asset.

When we prefer SLM:-

we preferred SLM where the equal amount of benefit is derived from the asset through the useful life of the asset. e.g A room's capacity of storing the goods remain same in each year weather old or new.

When we prefer DBM:-

we preferred DBM where resulting benefit from the asset diminishing (decreasing) year by year.

 140 views

46⟩ What is written down Value method?

Diminishing Balance Method or Written Down Value Method

Under this method, depreciation is charged at a fixed rate every year but on

reducing balance i.e., on balance reduced each year during the economic life of

the asset by the amount of depreciation till the asset is reduced to its scrap

value.

For example, if the cost of the asset is Rs. 1,000 the rate of depreciation

is 10 % on Rs. 1,000 i.e., Rs. 100, in the second year, it will be 10 % on Rs

900 i.e., Rs. 90 is the third year, it will be 10 % on Rs 810 (900-90) i.e., Rs.

81 and so on.

 139 views