Tax Book 2023

Assets and Depreciation Chapter- 10

MULTIPLE CHOICE QUESTIONS

Q.1. Pre commencement expenditure is a___.

(a) Fictitious asset

(b) Depreciable asset

(c) Eligible depreciable asset

(d) None of these

Q.2. Disposal consideration on sale of an asset is

(a) Amount received on sale

(b) FMV

(c) Lower of FMV and amount received

(d) Higher of FMV and amount received

Q.3. Disposal consideration in case of lost asset comprises of__.

(a) Salvage value

(b) Insurance claim

(c) both ‘a’and ‘b’

(d) none of these

Q.4. An approved leasing company is the one approved by _____.

(a) FBR

(b) SECP

(c) CIR

(d) Provincial government

Q.5. Depreciation calculated under _____ is allowed as deduction against business income.

(a) First schedule

(b) Second schedule

(c) Third schedule

(d) Fourth schedule

Q.6. FMV is determined in relation to ___.

(a) Property

(b) Services

(c) Perquisites

(d) All of these

Q.7. In case of an asset partly used only for business then depreciation will be allowed as deduction on
_____basis.
(a) Full year
(b) Half year
(c) Proportionate
(d) Not allowed

Q.8. The depreciation charged in case of non-depreciable asset used wholly for business would be
___.
(a) Zero
(b) Half