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DEPRECIATION

Total questions: 10

Worksheet time: 11mins

Name
Class
Date
1.

The____________ is an accelerated depreciation method that counts as an expense more rapidly

a)

double declining balance method

b)

Sum-of-the-year’s digit

c)

Partial method

d)

straight-line-method

2.

Cost = RM10000, Salvage value = RM2000, Useful life 4 years.

Calculate annual depreciation using straight line method.



(a)  

3.
The amount that will be received for an asset at the time of its disposal.
a)

useful life

b)

market value

c)

book value

d)

salvage value

4.

Depreciation = RM2000/year.

Initial Cost = RM10000

NET BOOK VALUE at END of YR 4 =

a)

RM2000

b)

RM8000

c)

RM2500

d)

RM5000

5.

Recording an EQUAL AMOUNT of depreciation expense for a plant asset in EACH YEAR of its useful life.

a)

double declining balance method

b)

straight-line-method

c)

partial method

d)

Sum-of-the-year’s digit

6.

The cost of new machine is RM50,000. Its estimated useful life is 10 years with a salvage value of RM5,500. Find the BOOK VALUE at the end of year 3 using declining balance method.

(a)  

7.

Depreciation for business is -

a)

Loss

b)

Gain

c)

Income

d)

Liability

8.

A motorcycle which costs RM12,000 is expected to have useful life of 8 years and a salvage value of RM3,000. Calculate the ACCUMULATED DEPRECIATION of the motorcycle at the end of 4th year using the straight line method.

(a)  

9.

The number of years the asset is expected to last (can be used) is....

a)

Time

b)

Useful life

c)

Salvage value

d)

Book value

10.

A company purchase a machine for RM50,000 that is assigned a RM9,000 salvage value and a 5-year useful life. Calculate the depreciation for Year 3 using SOYD method.

(a)