Practice Written Down Value (wdv) Method (18.5.2) - Depreciation Accounting

Practice: Written Down Value (WDV) Method

Lesson 18.5.2Depreciation Accounting

Practise this section

10 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.
Sign up to start the exercise
Quiz
4 questions · about 3 min · pass mark 70%. Hints available.
Sign up to start the quiz

6 sample questions

Question 1.
What is the formula for calculating depreciation using the WDV method?
Show hintHide hint
Think about what factors you need to multiply.
Question 2.
What happens to the book value after calculating depreciation?
Show hintHide hint
After calculating, what do you do next?
3Question 3.
What method calculates depreciation based on a fixed percentage of book value?
- Straight Line Method
- Written Down Value Method
- Sum of Years' Digits Method
Show hintHide hint
Remember the method that focuses on the value at the year start.
4Question 4.
In the first year of using WDV, will depreciation usually be higher or lower than a straight-line approach?
- Higher
- Lower
Show hintHide hint
Think about how quickly assets lose value initially.
Question 5.
An equipment valued at $20,000 has a depreciation rate of 15%. What will the book value be after three years?
Show hintHide hint
Apply the percentage decrease each year to the updated book value.
Question 6.
A fleet of vehicles are bought for $150,000 and depreciate at 25%. If after one year the company wants to sell them, what will be their value?
Show hintHide hint
What is 25% of the total value?

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