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WorksheetsChapter 23 - Plant Assets and Depreciation
Total questions: 20
Worksheet time: 11mins
Plant assets are used in operations and have useful lives that extend over more than one accounting period.
True
False
An asset's cost includes all normal and reasonable expenditures necessary to get the asset in place and ready for its intended use.
True
False
Salvage value is:
A factor relevant to determining depreciation under MACRS.
An estimate of the asset's value at the end of its benefit period.
A factor relevant to determining depreciation that cannot be revised during an asset's useful life.
Not a factor relevant to determining depletion.
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 formula for 'Net Book Value' is _____________.
Cost - Accumulated Depreciation
Cost - Depreciation
Cost + Depreciation
Cost + Accumulated Depreciation
Accumulated Deprecation has a __________nature
Debit
Credit
Balance
No
Depreciation arises because of -
Obsolescence
Constant use of assets
expiry of time
All of these
Factors taken into consideration for providing depreciation are -
Total cost of assets
Estimated useful life of the asset
Estimated scrap value of the asset
All of the above
Depreciation is provided on -
Current assets
Fictitious assets
Fixed assets
Intangible assets
Depreciation under fixed instalment method is calculated-
On the purchase price of asset
On the closing balance of asset
On each year’s opening balance of the asset
on the market price of asset
XYZ Company purchased a new truck for $35,000. They estimate it's salvage value is $5,000. It's useful life is 5 years. What is the annual depreciation?
$5,000
$6,000
$7,000
$8,000
XYZ Company purchased a new truck for $35,000. They estimate it's salvage value is $5,000. It's useful life is 5 years. What is the annual depreciation if they purchased the truck in October?
(a)
XYZ Company purchased a new truck for $35,000. They estimate it's salvage value is $5,000. It's useful life is 5 years. What will be the accumulated depreciation in year 3?
$15,000
$18,000
$10,000
$30,000
Which of these is a plant asset?
office supplies
delivery truck
office equipment
cash in bank
Accumulated Depreciation is considered a...
asset
liability
expense
contra asset
contra liability
