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WorksheetsTOPIC 9 (i) : ACCOUNTING FOR NON CURRENT ASSET
Total questions: 10
Worksheet time: 5mins
Expenditures relating to the acquisition of non current assets are treated as
capital expenditure
revenue expenditure
expenses
revenue
Below are the examples for Revenue Expenditure EXCEPT for
Repairs of motor vehicle
Depreciation of non-current assets
Installation costs
Motor vehicle insurance (2nd year onwards)
Below are the examples of Capital Expenditure EXCEPT for
Legal fees
Installation costs
Costs to acquire non-current assets
Fuel for motor vehicles
The Revenue Expenditure will reduce the net profit at
statement of financial position
statement of profit and loss
accounting equations
journal
Expenditures for the Extensions or additions to buildings of non-current assets are treated as
revenue expenditure
capital expenditure
revenue
expenses
When recorded the depreciation expenses, ____ account is debited and ____ account is credited.
Depreciation expenses; Asset
Depreciation expenses; Accumulated depreciation
Accumulated Depreciation; Depreciation expenses
Asset ; Accumulated depreciation
Accumulated Depreciation; Asset
The following are the examples of tangible non currents assets except
Factory machines
Trolleys in supermarkets
Office equipments
Customer goodwill
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
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
Which depreciation method allocates an equal amount of depreciation to each year?
Straight-line method
Units-of-production method
Reducing balance method
Sum of years method
