Under straight line method if the cost of asset isand scrap value isanduseful life isyear, then the amount of depreciation will be:
4500
4000
5000
2000
Q.4.
Depreciation under fixed instalment method is calculated-
On the purchase price of asset
On the closing balance of asset
On each year’s opening balance of the asset
on the market price of asset
Q.5.
Ashley's parents bought a house infor $118,The home's value increases at a rate ofannually. How much will the house be worth inIn 2020?
$256,283; $304,490
$280,778; $304,490
$256,283; $374,505
$190,245; $225,680
Q.6.
Your shiny new boat cost $ The depreciation for your boat isper year. Estimate the value of your vehicle in 3 years. What is the equation that models this problem?
y= 7650(.14)3
y= 7650(.86)3
y= 7650(1+.86/1)3*1
Q.7.
What is the one asset that can NEVER be depreciated?
Financing Costs
Land
Deferred Financing Cost
Land Improvements
Q.8.
An asset whose life will extend over more than one accounting period is called a
liability
current asset
non current asset
non current liability
Q.9.
A machinery costing ₹ 5,00,is depreciated @p.a. at straight line method. At the end of three years, the book value of the machinery will be :
₹ 3,50,000
₹ 2,50,000
₹ 2,00,000
₹ 3,00,000
Q.10.
Your shiny new boat cost $The depreciation for your boat isper year. Estimate the value of your vehicle in 3 years. What is the answer?
$20.99
$49,226.64
$11,333.81
$4865.82
Q.11.
Find the amount of depreciation chargeable under the straight line method for the second year if amount for first year is $4,000
$4000
$4400
$8000
$7600
Q.12.
Residual value of the asset means:
The price paid on the purchase of asset
The amount realised on the sale of asset
The net amount expected to realise on final disposal of assets
Reduced value of the asset every year
Q.13.
What will be the amount of depreciation of plant for fifth year as per straight line method when original cost of plant $1,000,Salvage value $40,, Expected useful lifeyears?
$62,000
$84,000
$76,000
$96,000
Q.14.
The net book value of assets is obtaining by deducting _______ with accumulated depreciation.
depreciation
market value
percentage of depreciation
cost
Q.15.
The value of asset recorded in the statement of financial position is at
cost
market value
net book value
cost plus accumulated depreciation
Q.16.
Depreciation is defined as: allocation of __________of non-current asset over its ______________________.
selling price remaining life
costuseful life
costremaining life
selling priceuseful life
Q.17.
Salem has a population of 15,and depreciates at a rate ofper year. What is the exponential equation?
P = 15,000(-.92)t
P=15,000(1.08)t
P=15,000(0.92)t
P=15,000(.08)t
Q.18.
A population of fish starts at 8,and decreases byper year. What is the population of fish afteryears?
14327
4309
839
7680
Q.19.
Suppose a culture of bacteria begins withcells and dies byeach year. Write an equation that represents this situation.
y=5000(0.7)x
y=30(5000)x
y=5000(1.3)x
y=5000xx
Q.20.
Daniel’s Print Shop purchased a new printer for $35,Each year it depreciates at a rate of 5%. How much will the printer be worth in 8 years?
$23,219.72
$136.72
$51,710.94
$16,710.94
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