Year 12 Accounting Unit 3

bank is a current asset account in the Balance Sheet

• always true

• sometimes true

• never true

The accumulated depreciation is more than the depreciation expense

• always true

• sometimes true

• never true

Under reducing balance, the deprecation of a NCA is higher than in the first year compared to using the straight line method

• always true

• sometimes true

• never true

The choice of depreciation method depends on the revenue earning capacity of the Non Current Asset.

• always true

• sometimes true

• never true

When GST paid < GST received in a reporting period the GST clearing account has a debit balance

• always true

• sometimes true

• never true

When a trade in occurs a loss or a gain on disposal always occur

• always true

• sometimes true

• never true

When a disposal of a Van occurs, the Van account is credited at the original purchase cost of the van

• always true

• sometimes true

• never true

Under straight line depreciation the depreciation expense is the same for each period

• always true

• sometimes true

• never true

Prepaid insurance expense is classified as a current liability

• always true

• sometimes true

• never true

Adjusting entries are always made on balance day (the last day of the reporting period)

• always true

• sometimes true

• never true