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Fixed assets

Total questions: 12

Worksheet time: 6mins

Name
Class
Date
1.

The only way a vehicle can be sold is by trading it in.

a)

True

b)

False

2.

When a director decides to take an asset for personal use it will be regarded as drawings.

a)

True

b)

False

3.

When an asset is bought the asset account will be credited.

a)

True

b)

False

4.

When a company dispose of an asset it will decrease the total assets on the credit side.

a)

True

b)

False

5.

When an asset is depreciated at a cost of 20%, the useful life of that asset is expected to be

a)

3 years

b)

5 years

c)

7 years

d)

10 years

6.

When the carrying value of an asset is R50 000 and the cost price R200 000, the accumulated depreciation will be?

a)

R250 000

b)

R150 000

c)

R50 000

d)

R200 000

7.

When you add the book value of an asset to the accumulated depreciation what amount will you get?

a)

Market value

b)

Selling price

c)

Cost price

d)

The rate of depreciation

8.

What will the double entry be in connection with the old vehicle when an old vehicle is traded in?

a)

Debit Vehicles and Credit Asset disposal

b)

Debit Vehicles and Credit Bank

c)

Debit Creditors control and Credit Asset disposal

d)

Debit Bank and Credit Vehicles

9.

How many movements can we find in the fixed asset note?

a)

1

b)

2

c)

3

d)

4

10.

Depreciation will be regarded as an asset or expense?

a)

Asset

b)

Expense

11.

To which account will Asset disposal close of to?

a)

Profit on sale of asset

b)

Income statement

c)

Depreciation

12.

What will happen to the vehicles and equipment accounts when it is sold?

a)

Decrease the cost

b)

Increase the cost

c)

Vehicles will be debited

d)

Asset disposal will be credited