Following are some of the multiple choice questions on the Depreciation with answers that will help the students in developing their knowledge.
1. Under straight line method if the cost of asset is 45000 and scrap value is 5000 anduseful life is 10 year, then the amount of depreciation will be:
2. Depreciation under fixed instalment method is calculated-
3. Your shiny new boat cost $7650. The depreciation for your boat is 14% per year. Estimate the value of your vehicle in 3 years. What is the equation that models this problem?
4. Ashley's parents bought a house in 2009 for $118,000. The home's value increases at a rate of 9% annually. How much will the house be worth in 2018? In 2020?
5. What is the one asset that can NEVER be depreciated?
6. An asset whose life will extend over more than one accounting period is called a
7. A machinery costing ₹ 5,00,000 is depreciated @ 20% p.a. at straight line method. At the end of three years, the book value of the machinery will be :
8. Your shiny new boat cost $7650. The depreciation for your boat is 14% per year. Estimate the value of your vehicle in 3 years. What is the answer?
9. Find the amount of depreciation chargeable under the straight line method for the second year if amount for first year is $4,000
10. Residual value of the asset means:
11. What will be the amount of depreciation of plant for fifth year as per straight line method when original cost of plant $1,000,000; Salvage value $40,000 , Expected useful life 10 years?
12. The net book value of assets is obtaining by deducting _______ with accumulated depreciation.
13. The value of asset recorded in the statement of financial position is at
14. Depreciation is defined as: allocation of __________of non-current asset over its ______________________.
15. Salem has a population of 15,000 and depreciates at a rate of 8% per year. What is the exponential equation?
16. A population of fish starts at 8,000 and decreases by 6% per year. What is the population of fish after 10 years?
17. Suppose a culture of bacteria begins with 5000 cells and dies by 30% each year. Write an equation that represents this situation.
18. Daniel’s Print Shop purchased a new printer for $35,000. Each year it depreciates at a rate of 5%. How much will the printer be worth in 8 years?
19. The original cost of a plant asset minus accumulated depreciation. (p. 451)
20. The total amount of depreciation expense that has been recorded since the purchase of a plant asset is called
21. A milling machine was bought for $200,000 and has accumulated depreciation of $65,000. On February 20th, the company disposed of the machine receiving nothing in return. How would you record the loss on the disposal of the milling machine?
22. The loss of an asset's value is...
23. Which fixed asset is LEAST likely to lose its value over time?
24. To calculate book value of an asset...
25. Because of land’s permanent nature, it is not subject to depreciation.
26. Calculating the estimated annual depreciation expense based on the amount of production expected from a plant asset.
27. Recording an equal amount of depreciation expense for a plant asset in each year of its useful life.
28. The amount that will be received for an asset at the time of its disposal.
29. Land and anything attached to it; also called real estate.
30. Cash and other assets expected to be exchanged for cash or consumed within a year.
31. A type of accelerated depreciation that multiplies the book value of an asset by a constant depreciation rate to determine annual depreciation.
32. The decrease in the value of a plant asset because of the removal of a natural resource.
33. Revenue that results when a plant asset is sold for more than book value.
34. A method that recognizes one half of a year's depreciation in the year of acquisition.
35. The loss that results when a plant asset is sold for less than book value.
36. The tax rate used to calculate property taxes.
37. A depreciation method required by the Internal Revenue Service to be used for income tax calculation purposes for most plant assets.
38. A method that recognizes a full year's depreciation if the asset is acquired in the first half of the year.
39. All property not classified as real property.
40. An accounting form on which a business records information about each plant asset.
41. The value of an asset determined by tax authorities for the purpose of calculating taxes.
42. The original cost of a plant asset minus accumulated depreciation.
43. Depreciation is the process of -
44. Main objective of charging depreciation is-
45. Depreciation arises due to -
46. Depreciation is provided on -
47. Factors taken into consideration for providing depreciation are -
48. Depreciation arises because of -
49. Characteristic of a depreciation is -
50. S=RM2,000C=RM25,000n=6 yearsFind the annual rate of depreciation using the reducing balance method.
Enjoyed the Quiz. Share this with friends