TOPIC 9 (iii) ACCOUNTING FOR NON CURRENT ASSET(DEPRECIATION)

The cost of vehicle RM 1000,000; residual value RM40,000 , Expected useful life 10 years, using straight line method,calculate depreciation for fifth year.

• 62,000

• 84,000

• 76,000

• 96,000

A machinery costing RM500,000 is depreciated @ 20% p.a. at straight line method and zero residual value.. At the end of three years, the book value of the machinery will be :

• RM 350,000

• RM 250,000

• RM 200,000

• RM 300,000

A motorcycle which costs RM12,000 is expected to have useful life of 10 years and a scrap value of RM3,000. Calculate the accumulated depreciation of the motorcycle at the end of 4th year using the straight line method.

• RM3,600

• RM900

• RM2,700

• RM4,500

The price of a van is RM120,000. The van is expected to have useful life of 15 years and a scrap value of RM6,000. Calculate the book value of the van at the end of 10th year using the straight line method.

• RM22,000

• RM33,000

• RM44,000

• RM76,000

Cost = RM 5,000

Useful life = 5 years

Residual = RM 1,000

Find the book value at the end of 3rd year using the straight line method.

• RM 5,000

• RM 4,000

• RM 1,000

• RM 2,600

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

• Annual depreciation

• Accumulated depreciation

• Scrap value

• Book value

Cost of a fixed asset minus accumulated depreciation.

• assessed value

• half-year convention

• current asset

• book value of a fixed asset

revenue that results when fixed asset is sold for more than book value.

• gain on disposal

• loss on disposal

• salvage value

• plant asset record

Which of the following assest is not depreciable asset

• Machinery

• Furniture

• Land

• Vehicle

Depreciation of asset for business is:

• Expense

• Income

• Loss

• Games