EE FLASHCARD

Front

What is the purpose of depreciation in accounting?

Back

To estimate the yearly fraction of an asset’s value used for income production

Front

Depreciable property must be:

Back

Used in business or income production and have a useful life longer than one year

Front

Which of the following is a requirement for an asset to qualify as "depreciable property"?

Back

The asset must be used in a business or for income production.

Front

Among the following scenarios, which one properly describes the nature of a depreciable intangible asset?

Back

A company buys a 20-year patent and uses it to generate revenue.

Front

What is the key characteristic of the Straight Line (SL) depreciation method?

Back

A constant amount of depreciation each year

Front

What is the correct formula for annual depreciation using the SL method?

Back

dk= (B - S.Vn)/N

Front

 If an asset has a 5-year life, original cost of 100 million VND, and a salvage value of 10 million VND, what is the annual depreciation using SL method?

Back

18 million VND

Front

What is the key characteristic of the Straight Line (SL) depreciation method?

Back

A constant amount of depreciation each year

Front

What is the correct formula for annual depreciation using the SL method?

Back

dk= (B - SVN)/N

Front

Asset with 5-year life, original cost 100 million VND, salvage value 10 million VND. Calculate annual depreciation using SL method.

Back

18 million VND