A piece of machinery was bought for $4000. It is to be depreciated at a rate of 10% per annum, using the straight line method.

What will be the NBV of the machinery after 2 years?

• $3200

• $3240

• $3600

• $3800

A car was bought for $10000. It is to be depreciated at a rate of 5% per annum, using the reducing balance method.

What is the amount of depreciation to be charged in the second year?

• $500

• $475

• $1000

• $50

Fixed Assets at cost $75000

Fixed Assets-Net Book Value $36000

• $36000

• $111000

• $75000

• $39000

A truck was bought on Jan 1 for $85000. It is to be depreciated at a rate of 20% on cost. What will be the NBV of the Truck after 2 years?

• $68000

• $17000

• $34000

• $51000

1 Jan Fixed Assets at cost $25000

1 Jan Depreciation on Fixed Assets $7600

31 Dec Depreciation on Fixed Assets $2300

What is the NBV on 31 Dec?

• $17400

• $22700

• $15100

• $19700

Which of the following statements is TRUE?

• Cost + Depreciation = NBV

• Cost - Accumulated Depreciation = NBV

• Cost + NBV = Accumulated Depreciation

• Cost + Depreciation = Accumulated Depreciation

Which of the following is not a method of depreciation?

• Reducing balance

• Diminishing value

• Straight line

• Cost

What are the double entries to record depreciation on a Fixed Asset?

• Dr Depreciation, Cr Provision for Depreciation

• Dr Depreciation, Cr Fixed Asset

• Dr Depreciation, Cr Profit and Loss

• Dr Profit and Loss, Cr Depreciation

Which depreciation method charges a fixed amount of depreciation each year?

• Reducing balance

• Diminishing value

• Straight line

• Cost

A Van costs $30000. It is expected to have a useful life of 10 years and a scrap value of $5000. Using the straight line method, what amount of depreciation should be charged each year?

• $3000

• $500

• $2500

• $3500