Depreciation Challenge: Test Your Knowledge and Skills

The video tutorial is a rapid-fire session on depreciation, covering key concepts such as the amount realized at the end of an asset's life, the process of depreciation, and calculations related to it. The session includes two rounds of questions, with the second round focusing on calculations and explanations. The video concludes with a call to action for viewers to engage by liking, commenting, and subscribing.

What is the term for the amount realized at the end of an asset's life?

• Market Value

• Residual Value

• Depreciation Value

• Book Value

Can depreciation be provided in a year when there is a financial loss?

• No, unless approved by management

• Yes, always

• No, never

• Yes, but only under certain conditions

Where is the depreciation charged on machinery recorded?

• Credited to the depreciation account

• Debited to the machinery account

• Debited to the profit and loss account

• Credited to the asset account

Which of the following is NOT a reason for depreciation?

• Wear and tear

• Obsolescence

• Appreciation

• Passage of time

How is depreciation calculated using the fixed installment method?

• Salvage value divided by useful life

• Cost of asset divided by number of years

• Cost of asset minus salvage value divided by useful life

• Cost of asset minus depreciation charged