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WorksheetsAccounting 2-Chapter 6 Depreciation of L-T Assets
Total questions: 15
Worksheet time: 16mins
Name
Class
Date
1.
This method of depreciation is based on Book Value.
a)
Straight-Line Method
b)
Declining Balance Method
c)
Sum-of-the-Years Digits
d)
Units of Production
2.
Which of these produces higher amounts of depreciation expense in the early years of the life of an asset?
a)
Straight Line Method
b)
Declining Balance Method
c)
Sum-of-the-Years Digits
d)
Units-of-Production
3.
Computers were purchased at a cost of
$22 000. on August 16. Useful life is 4 years, salvage value is $2000. What is the depreciation expense in Year One using the Sum-of-the-Years Digits? (Round answer to the nearest dolla
$22 000. on August 16. Useful life is 4 years, salvage value is $2000. What is the depreciation expense in Year One using the Sum-of-the-Years Digits? (Round answer to the nearest dolla
a)
2667
b)
8000
c)
3333
d)
8800
4.
Computers were purchased at a cost of
$22 000. on August 14. Useful life is 4 years, salvage value is $2000. What is the depreciation expense in Year One using the Sum-of-the-Years Digits? (Round answer to the nearest dollar)
$22 000. on August 14. Useful life is 4 years, salvage value is $2000. What is the depreciation expense in Year One using the Sum-of-the-Years Digits? (Round answer to the nearest dollar)
a)
2667
b)
8000
c)
3333
d)
8800
5.
The total amount of depreciation expense that has been recorded since the purchase of a plant asset is called
a)
book value.
b)
accumulated depreciation.
c)
salvage value.
d)
net realizable value.
6.
Annual straight-line depreciation expense of a plant asset is calculated as the original cost of the plant asset divided by the years of estimated useful life.
a)
True
b)
False
7.
The difference between an asset's account balance and its related contra account is called book value.
a)
True
b)
False
8.
Depreciation expense is calculated using all of the following amounts except
a)
fair market value.
b)
estimated salvage value.
c)
estimated useful life.
d)
depreciable cost
9.
Depreciation has cash flow.
a)
True
b)
False
10.
The only long-term asset that does not depreciate is:
a)
Land Improvements
b)
Land
c)
Building
d)
Trademarks
11.
The Sum-of-the-Years Digits method of is considered an accelerated method of depreciation.
a)
False
b)
True
12.
All of the following are examples of a long-term asset that would use units-of-production method to calculate annual depreciation except:
a)
Truck
b)
Copy machine
c)
Computer
d)
Bulldozer
13.
What type of asset is a copyright?
a)
Current Asset
b)
Property, Plant & Equipment Asset
c)
Intangible Asset
14.
What type of asset is Prepaid Insurance?
a)
Current Asset
b)
Property, Plant, & Equipment Asset
c)
Intangible Asset
15.
What type of asset is a bulldozer?
a)
Current Asset
b)
Property, Plant, & Equipment Asset
c)
Intangible Asset
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