Fixed assets

The only way a vehicle can be sold is by trading it in.

• True

• False

When a director decides to take an asset for personal use it will be regarded as drawings.

• True

• False

When an asset is bought the asset account will be credited.

• True

• False

When a company dispose of an asset it will decrease the total assets on the credit side.

• True

• False

When an asset is depreciated at a cost of 20%, the useful life of that asset is expected to be

• 3 years

• 5 years

• 7 years

• 10 years

When the carrying value of an asset is R50 000 and the cost price R200 000, the accumulated depreciation will be?

• R250 000

• R150 000

• R50 000

• R200 000

When you add the book value of an asset to the accumulated depreciation what amount will you get?

• Market value

• Selling price

• Cost price

• The rate of depreciation

What will the double entry be in connection with the old vehicle when an old vehicle is traded in?

• Debit Vehicles and Credit Asset disposal

• Debit Vehicles and Credit Bank

• Debit Creditors control and Credit Asset disposal

• Debit Bank and Credit Vehicles

How many movements can we find in the fixed asset note?

• 1

• 2

• 3

• 4

Depreciation will be regarded as an asset or expense?

• Asset

• Expense