ACC11L14 INTRO TO ASSETS DISPOSALS PRE-LESSON QUIZ

The worth of a vehicle in the books of the business can be correctly defined as:

• The cost price

• The carrying value

• The selling price

All fixed assets are subject to depreciation.

• TRUE

• FALSE

Accumulated depreciation is an operating expense

• TRUE

• FALSE

An asset has a cost price of R120 000 and is subject to 5% depreciation per year straight line method. The business has owned this asset for 14 years. Calculate the carrying value of the asset.

• 84 000

• 63 000

• 42 000

• 36 000

Equipment with a cost price of R50 000 has a carrying value of R6000 after 8% dep straight line method. How many years has this asset been in use?

• 10

• 11

• 9

• 8

An asset has an accumulated depreciation of R216 000 and a Cost Price of R360 000. The business has owned the asset for 5 years. What is the asset's depreciation rate (straight line method)?

• 10%

• 8%

• 12%

• 9%

A vehicle was purchased on 1 September 2022 for R230 000. It is subject to 9% depreciation diminishing balance method. Calculate the accumulated depreciation of the vehicle at the financial year end 28 February 2023.

• 10 350

• 20 700

• 12 075

• 8 625

An asset with a cost price of R180 000 is subject to 8% depreciation diminishing balance method. Calculate the carrying value after 2 years.

• R165 600

• R152 352

• R17 648

• R13 248

An asset with a cost price of R180 000 is subject to 8% depreciation diminishing balance method. Calculate the accumulated depreciation after 3 years.

• R39 836,16

• R27 648

• R25 436,16

• R52 350

A vehicle was purchased on 1 September 2022 for R230 000. It is subject to 9% depreciation diminishing balance method. Calculate the accumulated depreciation of the vehicle at the financial year end 28 February 2024.

• R19 768.50

• R219 650

• R30 118.50

• R10 350