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WorksheetsAC C10 - Non-Current Assets
Total questions: 20
Worksheet time: 10mins
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
The cost of motor vehicles is RM24,000 and is expected to have a residual value of RM4,000 after 20 years. Using the straight-line method, calculate the annual depreciation expenses.
RM1,000
RM1,200
RM2,000
RM2,400
The following are the common causes of depreciation except ________________.
Wear and tear
Passage of time
Bad debts recovered
Usage
Using the reducing-balance method of charging depreciation, depreciation is charged on the _______.
market value
original cost
written down value
scrap value
Which of the following is not a plant asset?
Land
Buildings
Equipment
Accounts Payable
Repair work that generates a capital expenditure because its extend the asset's life past the normal expected life is called
depreciable cost
extraordinary repair
revenue expenditure
asset expenditure
A copy machine costs RM45,000 when new and has accumulated depreciation of RM44,000. Suppose Print and Photo Center junks this machine and receives nothing. What is the result of the disposal transaction?
No gain or loss
Gain RM1,000
Loss RM1,000
Loss RM45,000
Which of the following is not a step during the disposal of an asset?
Bring the depreciation up to date
Remove the old and disposes-of asset
Record the value of accounts payable
Determine the amount of any gain or loss
Intangible assets are assets that have physical form and non-valuable.
TRUE
FALSE
What is a asset register
I don't Know
It only records current assets
Is a document that shows the assets that a business contains and owns
is a document that shows the liabilities that a business contains and owns
How do you calculate the cost of a non current asset
You can't calculate it
Original purchase price + all other costs
Original purchase price of the asset
Original purchase price + all other once off costs
why do depreciable assets have a finite life
As assets age they wear out
assets become out of date with new technology arising
As their life expires so does their ability to earn revenue
None of the above
Why is the asset register important
Because if you don't have one you can't get caught by police and go to jail
It is permitted by law to have one
If an asset is stolen the record is in place to see what asset had been stolen
To keep a record of all the business names
Which of the following best explains what is meant by ‘capital expenditure’?
Expenditure on non-current assets, including repairs and maintenance
Expenditure on expensive assets
Expenditure relating to the issue of share capital
Expenditure relating to the acquisition or improvement of non-current assets
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)
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
What is the gain or loss arising from disposal of a machine bought at the cost of RM20,000, with accumulated depreciation of RM5,600 and trade in value of RM12,000?
Gain RM1,500
Gain RM2,400
Loss RM1,500
Loss RM2,400
What are the correct ledger entries to record an acquisition of a non-current asset on credit?
Dr. Non-current assets – cost ; Cr. Receivables
Dr. Payables ; Cr. Non-current assets – cost
Dr. Non-current assets – cost ; Cr. Payables
Dr. Non-current assets – cost ; Cr. Revaluation Surplus
