ACC11L13 Fixed Assets: Grade 10 Revision

Depreciation is a non-cash transaction

• YES

• NO

For every debit there is an equal credit

• Historical Cost Primciple

• Prudence Principle

• Materiality Principle

• Double entry Principle

Depreciation goes on the _____ side of the general ledger

• Debit

• Credit

Land and Buildings will be recorded at the original cost price regardless of the current market value

• Business entity principle

• Going concern Principle

• Historical Cost Principle

• Concept of Materiality

Accumulated depreciation goes on the _____ side of the general ledger

• Debit

• Credit

The owner's vehicle will not be found in the fixed asset note of the business.

• Business Entity Principle

• Materiality Principle

• Going-concern Principle

• Historical Cost Principle

The carrying value of an asset is the worth of the asset before depreciation has been taken into account.

• TRUE

• FALSE

Equipment with a CP of R25 000 has a depreciation rate of 10% p.a straight line method. Calculate the yearly depreciation.

(a)  

Equipment with a CP of R25 000 has a depreciation rate of 10% p.a straight line method. Calculate the accumulated depreciation after 4 years

(a)  

Equipment with a CP of R25 000 has a depreciation rate of 10% p.a straight line method. Calculate the carrying value after 7 years.

(a)