ACC11L17 Asset Acquisitions Pre- lesson Quiz

Per definition, a fixed asset has a lifespan of:

• Less than 1 year

• More than 1 year

• 10 Years only

• Between 1 - 2 years

Depreciation is recorded on the​ (a)   side and accumulated depreciation is recorded on the ​ (b)   side

• Debit
• Credit

Land and Buildings do not depreciate

• True

• False

Repairs to equipment increase an asset's worth

• True

• False

Straight line method depreciation of 25% shows a useful lifespan of:

• 5 years

• 4 years

• 3 years

• 7 years

An asset with a useful lifespan of 5 years will have a depreciation rate of:

• 10%

• 20%

• 25%

• 40%

Diminishing balance method at 8% over 5 years amounts to less depreciation than 8% straight line method over 5 years

• True

• False

The minimum carrying value than an asset can depreciate to is:

• R0.00

• R2.00

• R1.00

• x > R0.00

The carrying value of an asset over 5 years will be more using the straight line method than the diminishing balance method

• True

• False

The accumulated depreciation general ledger will have a debit transaction should an asset be sold

• True

• False