• #### 1.  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? •$20.99
• $49,226.64 •$11,333.81
• $4865.82 • #### 2. If original cost of an asset is Rs. 10,000, rate of depreciation 10 % p.a. then the value of depreciation under diminishing balance method after third year will be: 2016 • Rs. 1000 • Rs. 900 • Rs. 700 • Rs. 810 • #### 3. S=RM2,000C=RM25,000n=6 yearsFind the annual rate of depreciation using the reducing balance method. • 9.8% • 15.76% • 20.36% • 34.36% • #### 4. Depreciation in the value of asset is - • Permanent decrease • Temporary decrease • Seasonal decrease • None of these • #### 5. Annual depreciation may or may not be equal from year to year. • True • False • #### 6. Original cost of machinery Rs. 5,500, scrap value Rs. 500, the useful life of machinery 10 years, then the annual value of deprecation will be: 2018 • Rs. 500 • Rs. 550 • Rs. 1000 • Rs. 1500 • #### 7. The value of Assets may rise or fall on account of: 2018 • Depreciation • Depletion • Fluctuation • Amortization • #### 8. The net book value of assets is obtaining by deducting _______ with accumulated depreciation. • depreciation • market value • percentage of depreciation • cost • #### 9. 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? •$62,000
• $84,000 •$76,000
• $96,000 • #### 10. Depreciation on the diminishing balance method of Rs. 2000 at the rate of 10% p.a after three years will be: 2015 • Rs. 1400 • Rs. 1458 • Rs. 542 • None of these • #### 11. What is the total amount whatsoever received by selling used or obsolete asset or its spare parts known as? • Scrap Value • Salvage Value • Residual Value • All of these • #### 12. What is the original cost? • It is an amount paid for an asset including any tax. • It is an amount paid for an asset excluding any tax. • #### 13. Cost = RM 5,000The expected to be obsolete = 5 yearsSalvage value = RM 1,000Find the book value at the end of 3rd year using the straight line method. • RM 5,000 • RM 4,000 • RM 1,000 • RM 2,600 • #### 14. 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
• #### 15.  The value of an asset at the end of its useful life is....

• Annual depreciation
• Accumulated depreciation
• Scrap value
• Book value
• #### 16.  The physical deterioration in assets due to use in business is called: 2017

• Depletion
• Obsolescence
• Wear and tear
• Accident

• RM5,142.86
• RM1,258.71
• RM5,142.68
• RM1,285.71
• #### 18.  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
• #### 19.  Depreciation of an asset should not exceed the: 2015

• Original cost
• Depreciable value
• Market price
• Scrap value

• Amortization
• Depreciation
• Appreciation
• Depletion

• Loss
• Gain
• Income
• Liability
• #### 22.  The period during which the asset will help in earning income of business is known as: 2016

• Consumed life
• Expired life
• Exhausted life
• Working life

• RM22,000
• RM33,000
• RM44,000
• RM55,000
• #### 24.  Depreciation is defined as: allocation of __________of non-current asset over its ______________________.

• selling price remaining life
• costuseful life
• costremaining life
• selling priceuseful life
• #### 25.  Loss on the sale of machinery should be written off against: 2016

• Sales account
• Depreciation fund account
• None of these

• Time
• Useful life
• Scrap value
• Depreciation
• #### 27.  The value of asset recorded in the statement of financial position is at

• cost
• market value
• net book value
• cost plus accumulated depreciation
• #### 28.  In straight line method, depreciation is calculated on: 2018

• Book value
• Market value
• Scrap value
• Original cost
• #### 29.  Depreciation arises because of; 2019

• Fall in the market value of an asset
• Physical wear and tear
• Fall in the value of money
• Increase in the value of money
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