Q.1
The loss of an asset's value is...
  • depreciation
  • data processing
  • book value
  • liability value
Q.2
To calculate book value of an asset...
  • original value times the amount of depreciation
  • amount of depreciation divided by current value
  • original value minus amount of depreciation
  • original value divided by depreciation per year
Q.3
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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