Font size
WorksheetsQUIZ 1 : TOPIC 9 [ACCOUNTING FOR NON CURRENT ASSETS]
Total questions: 25
Worksheet time: 13mins
Which of the following can be considered as a capital expenditure?
Purchase price of machinery
costs of upgrading the machinery
costs of maintaining the machinery
installation costs of machinery
fire insurance
Depreciation is a process of
asset devaluation
cost accumulation
cost allocation
asset valuation
Which of the following expenses could considered as capital expenditure?
petrol costs for motor van
depreciation of motor van
repairs to motor van
installation of air-condition unit on motor van
Which of the costs listed below is not a revenue expenditure?
petrol costs for motor van
repairs of motor van
purchase of motor vehicle to be used in the business
electricity costs of using machinery
The following are considered to be a revenue expenditures except :
costs of goods purchased from a supplier
salary paid to a clerk
installation costs of an air-conditioner in the office
costs of repainting the office
The Net book value of depreciable asset is the difference between
depreciation and accumulated depreciation
cost and accumulated depreciation
cost and depreciation expense
none of above
The following are considered to be a capital expenditures except :
costs of assets purchased for use in the business
salary paid to a manager
import duty of a machine
cost of painting the office
Which of the following expenditure incurred in connection with the acquisition of a building should be charged to the expense accounts?
legal fees on the building purchased
expenses incurred in the construction of parking space for staff
fire insurance on building
installation cost of air-conditioning for the building
Determine the following items which are a capital expenditure.
costs of renovation to building
purchase of goods for resale
decoration for business premises
purchase of stationery for office use
installation of air-conditioning system
Determine the revenue expenditure for the following items.
costs of renovation to building
purchase of goods for resale
decoration for business premises
purchase of stationery for office use
installation of air-conditioning system
Long term investment is categorized as
current assets
non-current assets
current liability
non-current liability
Intangible non-current assets
cannot be substantially touched but are significant to the company
can be converted to cash within one year
are to be used in a daily operation and to pay ongoing expenses
include accounts receivable, inventory, prepaid expenses and cash
Which of the following is included as the costs to acquire the asset and to get it ready for use?
installation expenses
accessories and extra expenses
rental expenses
depreciation expense
Depreciation is to
allocate the cost of the assets based on an inconsistent rate every year.
be recognized as the business income for the purpose of financial reporting
increase the asset value and may vary with the businesses
distribute the cost of the assets to the period of the asset is in use
How does depreciation in the reducing balance method affect the statement of profit or loss and other comprehensive income?
large amount at the beginning of the period and reduced from time to time
consistent amount from the year it is acquired until the end of its useful life
small amount is charge at the beginning of the period and increased as time goes by
the amount is divided by the useful life of the asset
Which factor does not affect the calculation of depreciation?
Residual value
cost
patent
period of the asset used
What is the journal entry to record purchase of machine by credit from Star Company?
debit Star Company; Credit Machine
debit Machine; credit Bank
debit Machine; credit Star Company
debit Bank; credit Machine
The depreciation for the year is recorded as _____________ in the statement of profit or loss.
liability
assets
revenues
expenses
The gain from disposal of non-current assets is obtained when _____________.
the selling price is less than the net book value of the asset
the selling price is exceed the net book value of the asset
the net book value is greater than the depreciation of the asset
the depreciation is lower than the residual value of the asset
The value placed on a non-current asset at the end of its useful life is known as ___________________
net book value
cost value
salvage value
accumulated depreciation
The suitable example of non current asset that not subject to depreciation is
vehicles
land
furnitures
buildings
The cost of new non current asset can be calculated by ________with the _______________
deducted; Trade-in value
added; Trade in value
deducted; Net book value
added; Net book value
Acquired of an intangibles asset should be recorded as a _____________
current asset
non-current asset
current liability
non-current liability
The term _______________ refers to the exchange of an old fixed asset for a new one.
disposal
retirement
trade-in
amortization
The cost of a fixed asset ____________ its accumulated depreciation is equal to the _____________.
add ; net book value
less ; net book value
add; depreciation expense
less; depreciation expense
