WorksheetsAccounting for Non-Current Asset
Total questions: 10
Worksheet time: 5mins
A company buys a new machine. Which of the following costs would be classified as a revenue expenditure rather than a capital expenditure?
Installation and testing fees for the machine.
Annual fire insurance premium for the machine.
Legal fees incurred for the purchase agreement.
Freight charges to deliver the machine.
What is the primary purpose of recording depreciation for a non-current asset?
To ensure there is enough cash saved to replace the asset.
To reflect the asset's current market value on the Statement of Financial Position.
To calculate the total amount of repairs the asset will need in the future.
To systematically allocate the cost of the asset over its useful life.
A machine was purchased for RM130,000 with an estimated residual value of RM10,000 and a useful life of 10 years. Using the straight-line method, what is the annual depreciation expense?
RM13,000
RM12,000
RM1,000
RM14,000
A company uses the reducing balance method at a rate of 40%. An asset has a Net Book Value of RM30,000 at the start of the year. What is the depreciation expense for that year?
RM12,000
RM20,000
RM18,000
RM10,000
A business sells an asset with a Net Book Value of RM20,000 for RM15,000 cash. What is the result of this disposal?
A gain on disposal of RM15,000.
No gain or loss is recorded.
A gain on disposal of RM5,000.
A loss on disposal of RM5,000.
Under the yearly basis for timing depreciation, how much depreciation is charged in the year an asset is sold?
No depreciation is charged.
A full year's depreciation.
Half a year's depreciation, regardless of the sale date.
A partial amount based on the number of months it was owned.
How is the 'Net Book Value' of a non-current asset presented in the Statement of Financial Position?
As the total of accumulated depreciation, listed as a liability.
It is the asset's original cost, listed under Non-Current Assets.
As the asset's original cost less its accumulated depreciation.
It is listed as an expense in the Statement of Profit or Loss.
A company trades in an old machine for a new one. How is the gain or loss on this exchange determined?
By comparing the old machine's accumulated depreciation to its trade-in value.
By comparing the new machine's cost to the old machine's trade-in value.
By comparing the old machine's Net Book Value to its trade-in value.
By comparing the old machine's trade-in value to its original cost.
According to the monthly basis for depreciation, if an asset is purchased on March 12th, when does depreciation calculation begin for that asset?
No depreciation is charged until the next financial year.
From April 1st.
Prorated for the remaining days in March.
For the entire month of March.
Which of these is an example of an intangible non-current asset?
A registered trademark for the company's brand.
Machinery used in the production process.
A company-owned delivery vehicle.
Land on which the company's factory is built.
