What is depreciation?
A) Cost of a fixed asset WRONG ANSWER
B) Cost of a fixed asset’s repair WRONG ANSWER
C) The residual value of a fixed asset WRONG ANSWER
D) Portion of a fixed asset’s cost consumed during the current accounting period RIGHT ANSWER!!!
Under which depreciation method the amount of depreciation expenses remains same throughout the useful life of a fixed asset
A) Straight line method RIGHT ANSWER!!!
B) Reducing balance methodWRONG ANSWER
C) Number of units produced method WRONG ANSWER
D) Machine hours method WRONG ANSWER
A company purchased a vehicle for $6000. I will be used for 5 years and its residual value is expected to be $1000. What is the annual amount of deprecation using straight line method of depreciation?
A) $1000RIGHT ANSWER!!!
B) $2000 WRONG ANSWER
C) $3000 WRONG ANSWER
D) $3300WRONG ANSWER
What is the accumulated deprecation?
A) Sum of all depreciation expenses of a fixed asset RIGHT ANSWER!!!
B) Depreciation expenses WRONG ANSWER
C) Cost of depletion of assets WRONG ANSWER
D) Future value of fixed asset WRONG ANSWER
Which of the following is the normal balance of an accumulated depreciation account?
A) Debit balance WRONG ANSWER
B) Credit balance RIGHT ANSWER!!!
C) Nil balance WRONG ANSWER
How trial balance shows the accumulated depreciation?
A) as a debit itemWRONG ANSWER
B) as a credit item RIGHT ANSWER!!!
C) It doesn’t showWRONG ANSWER
Which of the following is a double entry for depreciation expenses?
A) Accumulated depreciation debit and depreciation expenses Credit WRONG ANSWER
B) Depreciation expenses Debit and accumulated depreciation Credit RIGHT ANSWER!!!
C) Cash Debit and depreciation expenses Credit WRONG ANSWER
D) Depreciation expenses Debit and cash CreditWRONG ANSWER
An alternative term used for accumulated depreciation expenses?
A) Provision for depreciationRIGHT ANSWER!!!
B) Cumulative depreciation WRONG ANSWER
C) Targeted depreciationWRONG ANSWER
D) DepletionWRONG ANSWER
Which of the following is/are a kind of depreciation expenses?
A) AmortizationWRONG ANSWER
B) DepletionWRONG ANSWER
C) Both of themRIGHT ANSWER!!!
A fixed asset was bought for $5000. Its accumulated depreciation is $3000 and rate of depreciation is 20%. Calculate its depreciation expenses for the current accounting period using reducing balance method?
A) $600 WRONG ANSWER
B) $2000 WRONG ANSWER
C) $300WRONG ANSWER
D) $400RIGHT ANSWER!!!
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