WorksheetsDIGIDAY GRADE 11 ACCOUNTING QUIZ
Total questions: 10
Worksheet time: 1hrs 11mins
Depreciation refers to ...
Lowering the amount of an asset.
Making an item less expensive.
Amount by which an asset decreases in value
Land & buildings reducing in value.
Which of the following is an example of depreciation?
A car increasing in value over time.
A computer becoming more expensive.
Equipment decreasing in value as it ages.
Land appreciating in value.
What is the formula for calculating depreciation using the straight-line method?
(Cost of asset - Salvage value) / Useful life
(Cost of asset * Useful life) / Salvage value
(Cost of asset + Salvage value) * Useful life
(Cost of asset / Useful life) - Salvage value
Why is depreciation important for businesses?
To increase the value of assets
To accurately reflect the decrease in value of assets over time
To avoid paying taxes
To make assets more expensive
Which of the following is a factor that affects the depreciation of an asset?
Market demand
Color of the asset
Age of the asset
Brand of the asset
Using the straight-line method, a vehicle which costs R15000 would have the following annual depreciation charge at 15% p.a.
R2200
R2250
R1500
R2400
A company car costing R100 000 is depreciated at 7% per annum. Using the diminished-balance method. What is the depreciation charge for the 3rd year of owning the car? Round off to the nearest Rand if necessary.
R7 000
R7 540
R6 510
R6 054
A company car costing R100 000 is depreciated at 7% per annum. Using the diminished-balance method. What is the carrying value of the car at the end of the first 2 years
R86 490
R93 000
R80 436
R87 200
How long would it take to completely write-off equipment costing R10 000 if it was depreciated on a straight-line basis, at 5% per annum?
15 years
10 years
20 years
22 years
Type out the following concept:
Sum of all the depreciation charges over the life of an asset
(a)
