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WorksheetsChapter 25 & 26 Depreciation
Total questions: 23
Worksheet time: 16mins
Depreciation is charged on the business’:
Current assets
Current liabilities
Non-current assets
None of the above
Depreciation is an expense as such is charged to the ......... ..... ....... .............
(a)
The main causes of depreciation are:
Physical depreciation
Economic factors
Time factors
Depletion
All the above
Depreciation charge for the period is (a) to the profit and loss account.
The straight line method of depreciation consists of:
Unequal amounts of depreciation each year
Increasing amounts of depreciation each year
Reducing amounts of depreciation each year
Equal amounts of depreciation each year.
If a provision for a depreciation account is in use, then the entries for the year’s depreciation would be:
Debit asset account, credit profit and loss account
Credit asset account, debit provision for depreciation account
Credit profit and loss account, debit provision for depreciation account
None of the above.
If a provision for a depreciation account is in use, then the entries for the year’s depreciation would be:
Debit asset account, credit profit and loss account
Credit asset account, debit provision for depreciation account
Debit profit and loss account, Credit provision for depreciation account
None of the above.
Cost of machinery is $22,000, disposal value is $ 2,000, and useful life is 4 years Annual depreciation using straight-line method is:
$2,500
$5,500
$5,000
None of the above
The cost of machinery is $22,000, and its useful life is 4 years but after 4 years the machinery has no value. Annual depreciation using straight-line method is:
$ 4,500
$5,500
$ 3, 500
None of the above
Which of the following is depleted?
Land
Goodwill
Machinery
Coal Mines
........-............... are shown at cost price in the appropriate asset account.
(a)
The amount of depreciation under straight-line method
Remains fixed for all year.
Decrease every year.
Revalued every year.
Increase every year.
Depreciation arises due to:
Wear and Tear
Reduction in the value of the asset
Increase in the value of liabilities.
Reduction in capital
Depreciation to machinery is debited to:
Profit and loss a/c
Machinery a/c
Depreciation a/c
Expense a/c
Under the reducing balance method, depreciation:
Increase every year.
Decrease every year.
Remain constant every year.
None of the above
The process of becoming out of date or obsolete is called:
Physical deterioration
Depletion
Obsolescence
Amortization
In the Balance sheet (..................... .... ............ ..........) the asset is shown at cost price, less the accumulated depreciation so giving the Net Book Value of the asset.
(a)
Depreciation charge for the period is shown separately as an ‘accumulated provision for depreciation account in the:
Profit and Loss statement
Cash flow
Balance Sheet
None of the above
On disposal of a non-current asset, its cost price, the accumulated depreciation charge, and the cash receive for the asset is transferred to a new- ‘ ____ ______ ______’
(a)
If there is a (a) on the disposal of a non-current asset the profit will be credited to the Profit and loss account.
If there is a (a) on the disposal of a non-current asset the loss will be charged as an expense in the Profit and loss account.
If a provision for a depreciation account is in use, then the entries for the year depreciation would be:
Debit asset a/c, credit profit and loss a/c
Credit asset a/c, debit provision for depreciation a/c
Credit profit and loss a/c, debit provision for depreciation a/c
None of the above
Providing for depreciation means that money is invested for financing the replacement of the asset.
True
False
