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WorksheetsChapter 12 Depreciation
Total questions: 17
Worksheet time: 11mins
At the time of charging depreciation, ____ account is debited and ____ account is credited.
(a)
Estimated sales value of an asset after its working life is called (a) .
The following are the examples of tangible non currents assets except
Factory machines
Trolleys in supermarkets
Office equipments
Customer goodwill
The following are the factors affecting depreciation...
Passage of time
Physical deterioration
Depletion
All of the above
The following are the common causes of depreciation except..
Wear and tear
Passage of time
Usage
Amount of bad debts
The ____________ method of depreciation assumes that the non current asset is used EVENLY throughout its useful life
Reducing Balance Method
Straight Line Method
revaluations method
My own method
Net Book Value is
Cost - depreciation
Cost - Accumulated Depreciation
Cost + Depreciation
Cost + Accumulated Depreciation
Accumulated Deprecation has a __________nature
Debit
Credit
Balance
No
Identify the concept which supports the need for depreciation.
Historical cost concept
Matching Principle
Monetary concept
Accounting period concept
Identify the formula for depreciation under Reducing Balance Method
% x (Cost + Accumulated depreciation)
% x (Cost - Accumulated depreciation)
% x cost
Cost - Scrap value
-----------------------------
Useful life
Depreciation is defined as: allocation of __________of non-current asset over its ______________________.
selling price
remaining life
cost
useful life
cost
remaining life
selling price
useful life
Non current asset is recorded in the balance sheet at its COST PRICE due to:
Matching principle
Historical cost concept
Prudence Concept
Monetary concept
Cost of a motor van = $40,000
Useful life= 5 years
Disposal value= $6,000
Find the NBV at end of year 2 using straight line method.
33,200
26,400
19,600
In calculating depreciation using the reducing balance method, it is important to provide the useful life of the asset.
True
False
Non-current assets are:
Capital expenditure
Revenue expenditure
Non-current assets ________ when depreciation _________.
Remain the same, increases
Increases, increases
Decrease, decrease
Decrease, increase
