Practice Depreciation (4) - Depreciation

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10 questions

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2 cards from this section. Quick, good the night before a test.
Exercise
6 questions · about 4 min · pass mark 70%. Hints available.
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Quiz
4 questions · about 3 min · pass mark 70%. Hints available.
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6 sample questions

Question 1.
What is depreciation?
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Think about what happens to an asset as it is used over many years.
Question 2.
Name one method used to calculate depreciation.
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Consider what we discussed regarding the calculation methods.
3Question 3.
What is depreciation?
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Think of the aging process of assets.
4Question 4.
The Straight-Line Method results in _____ depreciation for each year of an asset's life.
- Variable
- Consistent
- Accelerated
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Consider how consistent payments are made.
Question 5.
An airplane originally costs ₹10,00,000 and has a salvage value of ₹1,00,000 with an estimated useful life of 10 years. Calculate the annual depreciation using the Straight-Line Method and the Written Down Value Method at 15% for the first year.
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Apply the formulas for both methods and remember to use the updated book value for WDV.
Question 6.
Discuss how changing technology impacts the depreciation of office equipment, using specific examples.
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Think of specific technologies and how quickly they evolve.

6 more questions in this section. Enroll free to practise them all.