Business Mathematics | Depreciation

Depreciation is a loss or decline in value of a physical asset.

• True

• False

What are the two methods in calculating the depreciation?

Cost is the original price of the assets?

• Yes

• No

• Maybe

The number of years the asset is expected to last (can be used) is....

• Time

• Useful life

• Scrap value

• Depreciation

Salvage value is also known as...

• Scrap value

• depreciation

• trade-in value

• book value

The value of an asset at the end of its useful life is....

• Annual depreciation

• Accumulated depreciation

• Scrap value

• Book value

Below are the descriptions of the total depreciation except...

• The total amount that an asset is reduced over its useful life

• The difference between the actual cost and the accumulated depreciation

• The difference between cost and scrap value

• The amount depreciation per annum

Book value is...

• The difference between cost and scrap value

• The difference between the actual cost and the accumulated depreciation charged until the date

• The difference between the actual cost and the annual depreciation

• The difference between the actual cost and the total depreciation

Question Try This (2)

C=RM 27000

S=RM7000

n=5

What is the annual rate of depreciation?

• 23.00%

• 23.88%

• 23.66%

• 23.77%

Question Try This (2)

C=RM 27000

S=RM7000

n=5

What is the book value at the end of 3 years?

• RM 12011.70

• RM 12000.00

• RM 12326.40

• RM 11960.28