4185620
Descripción
Test por Ciara Mooney, actualizado hace más de 1 año
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Creado por Ciara Mooney
hace casi 9 años
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Pregunta 1
Pregunta
What is depreciation?
Respuesta
-
the loss of value of an asset after you purchase it.
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the measure of the loss in value of a fixed asset over its useful economic life.
-
the cost price minus the reselling price.
Pregunta 2
Pregunta
When estimating depreciation, the business will take into consideration the estimated residual value of the asset.
Respuesta
- True
- False
Pregunta 3
Pregunta
Straight Line method of depreciation [blank_start]reduces[blank_end] the value of the [blank_start]asset[blank_end] by the [blank_start]same[blank_end] amount each year.
Respuesta
-
same
-
asset
-
reduces
Pregunta 4
Pregunta
[blank_start]Reducing Balance[blank_end] method of depreciation reduces the value of the asset by a smaller amount each year.
Respuesta
-
Reducing Balance
Pregunta 5
Pregunta
The main causes of depreciation are;
Respuesta
-
Natural usage (wear and tear)
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An unwanted asset
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Obsolescence
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End of useful economic life
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Passage of time
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All of the above
Pregunta 6
Pregunta
If depreciation is not charged, profits will be overstated and the balance sheet will not show the true value of the asset.
Respuesta
- True
- False
Pregunta 7
Pregunta
Depreciation is an expense.
Respuesta
- True
- False
Pregunta 8
Pregunta
Depreciation effects the Balance Sheet
Respuesta
- True
- False
Pregunta 9
Pregunta
Reducing Balance method illustrated on a graph will have an upward slope.
Respuesta
- True
- False
Pregunta 10
Pregunta
Disposal of an asset effects the following account(s);
Respuesta
-
Profit & Loss
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Balance Sheet
-
Asset Account
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Sales Account
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Provision for Depreciation Account
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Disposal Account
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All of the above
Pregunta 11
Pregunta
When calculating depreciation, you must only take into consideration the year the item was purchase or sold.
Respuesta
-
True: the depreciation is charged on a yearly basis
-
False: you must take into consideration the month the item was purchased or sold.
Pregunta 12
Pregunta
The Trade-in Allowance will effect your profits for the year.
Respuesta
- True
- False
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