U2AOS 3 Non-current Assets

The formula to calculate the rate of depreciation is

• Rate = Depreciation expense - the cost

• Rate = (Cost/ depreciation expense) *100

• Rate = (depreciation expense / cost) * 100

The carrying value refers to

• The residual value

• The depreciation that has been expensed

• The cost of the asset yet to be consumed/ allocated

• The cost of the asset yet to be consumed plus any residual value

What is the name of the depreciation method we learnt?

• Squiggly line method

• Straight line method

• Diminishing cost method

• Central line method

The use of fair value conflicts with

• Relevance

• Verifiability

• Faithful representation

• Comparability

What is the SLM formula?

• (HC - UL) / RV

• (UL+ RV) - HC

• (HC - RV) / UL

• (Depreciation exp / HC) * 100

Where is depreciation expense reported?

• Under Cost of goods sold in the Income Statement

• Under add other revenue in income statement

• Under 'less other expenses' in the income statement

• In the Balance sheet

Where is accumulated depreciation reported?

• In the Cash flow statement

• In the balance sheet under the cost of the asset in non-current assets section

• In the balance sheet under current assets

• In the income statement