MBA SUBJECTS - DETAILS OF MBA

MBA SUBJECTS |   Details of MBA , Friends, we hear many times that he is doing an MBA, She is going to an MBA. And many parents also advise their children to do an MBA. But we don’t have that much information about MBA. So today I am trying to write something about MBA SUBJECTS , I hope that you will definitely get this post helpful . source-bizjournals.com MBA FULL FROM = Master of Business Administration, this is a degree you can get knowledge about  MBA  subjects details . In this degree, you will be introduced to business management, Business Skill, Marketing skill, Business Strategy etc. Friends, you are seen today that there is a time of globalization. Corporate, Industrial, The economy is growing  all over  the world. In this way, MBA is an excellent package giving option. It is not only in India but in foreign countries it is scope too wide. So come know about the MBA.  ( MBA TOPIC) Elig...
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DEPRECIATION-MBA TOPIC


DEPRECIATION

1. What is Depreciation?

Ans. All About MBA TOPIC | Depreciation is a fall in the value of an asset because of its usage or with the passage of time or due to obsolescence or accident.
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Source- marketbusinessnews.com
2. What is the residual or scrap value of the asset?

Ans. It is the estimated value of a fixed asset at the end of its useful life. It is the amount
         which is expected to be received when the asset is sold at the end of its useful
         life. (MBA topic)
3. What are the causes of Depreciation?

Ans. Causes of depreciation are the constant use of asset and obsolescence.

MBA TOPIC,depreciation types,depreciation example,depreciation calculation,depreciation formula,causes of depreciation,depreciation in economics,depreciation entry,depreciation cost

4. What are the objectives of 
providing Depreciation?

Ans. (i) To ascertain the correct profit or loss,       (ii) To show the assets at their proper value.

5. What factors are 
involved in providing 
Depreciation?

Ans. Factors involved in providing depreciation are:
(i)  The original cost of the asset.
(ii) Estimated residual or scrap value of the asset at the end of its useful life          
(iii) The estimated effective life of the asset.

6. What are the methods of computing depreciation?

Ans. Methods of computing depreciation are:
(i) Straight Line Method, and (ii) Written Down Value Method.

7. What is meant by Straight Line Method of providing depreciation?

Ans. Straight Line Method of providing depreciation means the depreciation is calculated
         at a percentage of the original cost. Depreciation remains constant from year to year. (MBA TOPIC)

8. Give the formula to calculate the annual depreciation as per' 
Straight Line Method?

Ans. Depreciation under the Straight Line Method is computed as follows:
Cost - Estimated Scrap Value/ No of Years of Expected Life

9. What are the merits of the Straight Line Method?

Ans. Merits of the Straight Line Method are:
(i) It is a simple method of providing depreciation.
(ii)  Assets can be depreciated up to the estimated residual value.

10. What are the demerits of the Straight Line Method?

Ans. Demerits of Straight Line Method are:
(i) The interest component on capital is ignored.
(ii)  Repair and Maintenance cost which is likely to be more in later years is not considered.
11. What is meant by Written Down Value Method of providing depreciation?

Ans. Written Down Value Method of providing depreciation means depreciation is calculated and charged at a fixed rate on written down value of the asset every year.
12.  What are the merits of Written Down Value Method?

Ans. Merits of the Written Down Value Method are:
(i)  It takes into consideration repairs and maintenance costs in the later years.
(ii)  It is accepted by the Income Tax Act.
13.  What are the demerits of the Written Down Value Method?

Ans. Demerits of the Written Down Value Method are:
(i) It is difficult to ascertain the correct rate of depreciation.
(ii)  Value of asset cannot be zero.
14.  What is the difference between the Straight Line Method
and Diminishing Balance Method of charging
Depreciation?

Ans.  (i)   Under the Straight Line Method of Depreciation, Depreciation is the uniform year
after year whereas under the Written Down Value Method, it reduces every year.
(ii)  Depreciation under the Straight Line Method is calculated on the original cost
whereas under the Written Down Value Method, it is calculated on written
down value every year.








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