Practice Methods Of Calculating Depreciation (4.4) - Depreciation - ICSE 11 Accountancy

Practice: Methods of Calculating Depreciation

Lesson 4.4Depreciation

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9 questions

Flashcard drill
3 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
3 questions · about 2 min · pass mark 70%. Hints available.
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6 sample questions

Question 1.
Define the Straight-Line Method of depreciation.
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Think of how the cost is divided equally over time.
Question 2.
Explain the Written Down Value Method in a sentence.
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Consider how it changes each year.
3Question 3.
What is the Straight-Line Method of depreciation?
- A method that depreciates assets at different rates each year
- A method that divides the asset's value equally over its useful life
- A method that is only used for vehicles
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Think about consistency in reporting.
4Question 4.
True or False: The Written Down Value Method typically results in higher depreciation expenses in the later years.
- True
- False
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Consider how the percentage is applied.
Question 5.
A piece of machinery is purchased for ₹200,000 and has a salvage value of ₹20,000 with a useful life of 10 years. Calculate the annual depreciation using Straight-Line, Written Down Value (15%), and Sum of the Years' Digits methods.
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Remember to apply each method's formula accurately.
Question 6.
An asset has a cost of ₹150,000 with a salvage value of ₹15,000 and a lifespan of 5 years. How would you calculate the depreciation using the Sum of the Years' Digits? Provide the first year's depreciation expense.
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Focus on the sum of the digits and be precise with the fractions.

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