CMA Foundation Dec 2026 | Paper 2 FFCA — Depreciation ALL MCQs Solved

CMA Foundation December 2026 students — this video covers ALL MCQs on Depreciation from Paper 2 (FFCA), solved one by one with clear reasoning for each option. 📌 What's covered in this video: ✅ Meaning of depreciation and depreciable assets ✅ Straight Line Method (SLM) vs Written Down Value (WDV) — fixed vs fluctuating depreciation ✅ When depreciation starts — asset "put to use" concept ✅ Machine Hour Method and Production Unit Method ✅ Schedule II of Companies Act 2013 — useful life of assets ✅ Accelerated depreciation methods (WDV) ✅ Internal vs external causes of depreciation (wear & tear vs obsolescence) ✅ Depletion method for wasting assets (mines, quarries, oil wells) ✅ Profit/loss on sale of depreciated assets ✅ Effect of depreciation on the accounting equation ✅ Free downloadable PDF with all solved MCQs 🎯 Depreciation is a calculation-heavy but highly scoring chapter in CMA Foundation FFCA — master these shortcuts and formulas and you'll solve every depreciation MCQ in seconds. 📥 FREE PDF DOWNLOAD: Link available in the description box below and pinned as the first comment. 💬 Got doubts on any question? Drop them in the comments — I'll help you out. ⏱️ TIMESTAMPS: 0:01 Intro — Depreciation MCQs 0:29 Meaning of Depreciation 0:42 Depreciable vs Non-Depreciable Assets 0:56 Fixed Depreciation Amount — SLM 1:16 When Depreciation Starts (Put to Use) 1:53 Profit/Loss on Sale of Asset (SLM) 2:44 Depreciation Definition — Unexpired Cost 3:11 Machine Hour Method Calculation 4:20 Schedule II — Companies Act 2013 5:26 Accelerated Method of Depreciation (WDV) 5:55 Production Unit Method 6:10 Written Down Value / Carrying Amount 6:49 Effect of Depreciation on Accounting Equation 7:39 Depreciable Amount — Maximum Limit 7:58 Internal vs External Causes of Depreciation 8:54 Fixed Per-Unit Cost (Production Unit Method) 9:39 Book Value Definition 10:52 WDV Method — Third Year Depreciation Shortcut 11:55 Depletion Method for Wasting Assets 12:13 Closing Depreciation Account to P&L 12:27 Fourth Year SLM Depreciation 13:20 Depreciation on Revalued Assets --- 🔗 Useful Links: Free PDF (Depreciation MCQs Solved): [link in description/pinned comment] Full ICMAI Question Bank Playlist: Must Do Kit For December 2026: ❓ FREQUENTLY ASKED QUESTIONS Q1. What is depreciation? A. Depreciation is the reduction in the value of a fixed asset due to its continuous use, wear and tear, or obsolescence over time, gradually converted from an unexpired cost into an expense. Q2. When should depreciation on an asset start? A. Depreciation starts only after the asset is put to use — not from the date of purchase or the date it's received. Expenses incurred before the asset is put to use are capitalized into the asset's cost. Q3. What is the difference between SLM and WDV depreciation methods? A. Under the Straight Line Method (SLM), the depreciation amount remains fixed every year. Under the Written Down Value (WDV) method, depreciation is calculated on the reducing book value each year, so the amount decreases over time. Q4. Which depreciation method is called the accelerated method? A. The Written Down Value (WDV) method is known as the accelerated method of depreciation, since it charges a higher amount of depreciation in the earlier years. Q5. What is the difference between internal and external causes of depreciation? A. Wear and tear from usage is an internal cause of depreciation. Obsolescence — due to changes in technology, changes in taste and preference, or expiry of legal rights — is an external cause, as the business has no control over it. Q6. Which depreciation method results in a fixed cost per unit of production? A. The Production Unit Method results in a fixed depreciation cost per unit produced, since depreciation is calculated based on actual usage or output rather than time. Q7. On which assets is the depletion method of depreciation used? A. The depletion method is used for wasting assets such as mines, quarries, and oil wells, where the asset's value reduces as the resource is extracted. Q8. How does depreciation affect the accounting equation? A. Depreciation decreases both the asset (fixed asset value reduces) and the owner's capital/shareholders' equity (since depreciation is an expense that reduces profit). 📚 Join Our CA/ CMA Foundation & Intermediate Classes 👉 Modes: Face-to-Face (Kolkata), Live Online, Google Drive, and Pendrive 📞 𝐖𝐡𝐚𝐭𝐬𝐀𝐩𝐩: / 🌐 𝐕𝐢𝐬𝐢𝐭: ‎🌐 𝐖𝐡𝐚𝐭𝐬𝐀𝐩𝐩 𝐂𝐡𝐚𝐧𝐧𝐞𝐥: 🌐 𝐓𝐞𝐥𝐞𝐠𝐫𝐚𝐦: 🌐 𝐈𝐧𝐬𝐭𝐚𝐠𝐫𝐚𝐦: #CMAFoundation #FFCA #Depreciation #CMAFoundationDecember2026