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WorksheetsFAPS Recap - Depreciation
Total questions: 10
Worksheet time: 6mins
Non-current assets lose value (depreciate) over time as a result of what?
Passage of time
Wear and tear
Economic reasons
Depletion
What is the purpose of depreciation?
To increase the value of assets over time
To spread the cost of a non-current asset over its life
To eliminate taxes
To keep a track of how many times time an asset has been used
What are the two methods of calculating depreciation?
Cash flow method
Revenue recognition method
Diminishing/Reducing Balance method
Straight Line method
Which accounts are used to record depreciation?
Depreciation charges account
Accounts Payable
Accumulated depreciation
Sales Revenue
Is the depreciation charge shown in the SPL or SFP?
SPL as an expense
SFP as an asset
Is the cost of the asset shown in the SPL or the SFP?
SPL
SFP
Is accumulated depreciation shown in the SPL or SFP?
SPL
SFP
Which international standard includes the rules for depreciation?
IAS14
IAS32
IAS16
IAS19
Depreciation is only applicable to physical assets like machinery and buildings, not intangible assets like patents or copyrights.
True
False
When an asset is disposed of, the depreciation expense for the asset must continue to be recorded until the end of its useful life.
True
False
