Account 804 General Revision 3

Depreciation is classified as :

• Asset

• Liability

• Revenue

• Expense

Ahmed company bought a truck on January 1 ,2020. Using the following information , the acquisition cost of the truck is :

• BD 14000

• BD 14400

• BD 15300

• BD 15400

Ahmed company bought a truck on January 1 ,2020. Using the following information , the acquisition cost of the truck is :

• BD 23000

• BD 23300

• BD 23700

• BD 24000

On January 1, 2018 , Ahmed Company bought a new machine at cost of BD84,000 . It estimated a salvage value of BD4,000 at the end of its useful life of 4 years. Then, the depreciation rate under the straight line method will be :

• 25%

• 20%

• 10%

• 50%

On January 1, 2020 Ahmed company acquired a truck at a cost of BD 24000.The truck expected to have a salvage value of BD 2000 and a useful life of 4 years. Then, the annual depreciation for the second year using the straight line method is :

• BD 5500

• BD 6000

• BD 4000

• BD 11000

On September 30, 2020 Ali company acquired a machine at a cost of BD 16000.The machine expected to have a salvage value of BD 2000 and a useful life of 7 years. Then, the annual depreciation for the first year using the straight line method is :

• BD 500

• BD 2000

• BD 14000

• BD 1500

Ali company bought a Machine on January 1 ,2019. Using the following information , the depreciable base of Machine is :

• BD 30000

• BD 34000

• BD 5000

• BD 5333.33

On January 1, 2018 , Jehad Company bought a new machine at cost of BD45000 . It estimated a salvage value of BD3,000 at the end of its useful life of 10 years. Then, the depreciation rate under the straight line method will be :

• 1.5%

• 15%

• 10%

• 20%

Sara company bought a Machine on January 1 ,2020. Using the following information , the depreciable cost of Machine is :

• BD 2200

• BD 2000

• BD 10000

• BD 11000

Ali company purchased a truck for BD 53000 with a salvage value of BD 3000 and estimated useful life of BD 5 years. Ali used straight line method to calculate depreciation. The amount of net book value for the first year stated in number 1 is :

• BD 43000

• BD 40000

• BD 63000

• BD 60000