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WorksheetsJosh's Accounting for Non Current Assets
Total questions: 10
Worksheet time: 5mins
Whats the difference between a current and non current asset
One is held for 12 months, whereas the other is held for a period greater than 12 months
there is no difference
one has a 'non' infront of it
One is a present economic resource whereas the other isn't a present economic resource
What is a asset register
I don't Know
It only records current assets
Is a document that shows the assets that a business contains and owns
is a document that shows the liabilities that a business contains and owns
What is fair value
The price of the value disclosing GST
The price that would be received if the asset was sold at the time.
It is an estimate of its market value at the time of contribution
All of the above
How do you calculate the cost of a non current asset
You can't calculate it
Original purchase price + all other costs
Original purchase price of the asset
Original purchase price + all other once off costs
Why is the asset register important
Because if you don't have one you can't get caught by police and go to jail
It is permitted by law to have one
If an asset is stolen the record is in place to see what asset had been stolen
To keep a record of all the business names
why do depreciable assets have a finite life
As assets age they wear out
assets become out of date with new technology arising
As their life expires so does their ability to earn revenue
None of the above
What is useful life
Expected amount of time the business intends to use the current asset for
Expected amount of time the business intends to use the non current asset for
The amount the asset is intended to be purchased for
All of the ABOVE
How do you calculate annual depreciation rate
Historical value - residual value
-----------------------------------------
useful life
depreciation expense/ historical value
u can't calculate it
A and B
What is a Qualitative characteristic to explain why non current assets must be reported at their carrying value in the balance sheet
Understandability
Verifiability
Faithful representation
Relevance
Lukin Motors purchased a new computer for $2400 (plus GST). The computer will be deprecated at a rate of 15% per annum.
Calculate the depreciation of the computer?
360
2400
150
270
