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TOPIC 9 (iii) ACCOUNTING FOR NON CURRENT ASSET(DEPRECIATION)

Total questions: 10

Worksheet time: 6mins

Name
Class
Date
1.

The cost of vehicle RM 1000,000; residual value RM40,000 , Expected useful life 10 years, using straight line method,calculate depreciation for fifth year.

a)

62,000

b)

84,000

c)

76,000

d)

96,000

2.

A machinery costing RM500,000 is depreciated @ 20% p.a. at straight line method and zero residual value.. At the end of three years, the book value of the machinery will be :

a)

RM 350,000

b)

RM 250,000

c)

RM 200,000

d)

RM 300,000

3.

A motorcycle which costs RM12,000 is expected to have useful life of 10 years and a scrap value of RM3,000. Calculate the accumulated depreciation of the motorcycle at the end of 4th year using the straight line method.

a)

RM3,600

b)

RM900

c)

RM2,700

d)

RM4,500

4.

The price of a van is RM120,000. The van is expected to have useful life of 15 years and a scrap value of RM6,000. Calculate the book value of the van at the end of 10th year using the straight line method.

a)

RM22,000

b)

RM33,000

c)

RM44,000

d)

RM76,000

5.

Cost = RM 5,000

Useful life = 5 years

Residual = RM 1,000


Find the book value at the end of 3rd year using the straight line method.

a)

RM 5,000

b)

RM 4,000

c)

RM 1,000

d)

RM 2,600

6.

The value of an asset at the end of its useful life is....

a)

Annual depreciation

b)

Accumulated depreciation

c)

Scrap value

d)

Book value

7.

Cost of a fixed asset minus accumulated depreciation.

a)

assessed value

b)

half-year convention

c)

current asset

d)

book value of a fixed asset

8.

revenue that results when fixed asset is sold for more than book value.

a)

gain on disposal

b)

loss on disposal

c)

salvage value

d)

plant asset record

9.

Which of the following assest is not depreciable asset

a)

Machinery

b)

Furniture

c)

Land

d)

Vehicle

10.

Depreciation of asset for business is:

a)

Expense

b)

Income

c)

Loss

d)

Games