# DEPRECIATION: Question Preview (ID: 6783)

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Which method of depreciation uses the formula = (cost - total depreciation) * %
a) STRAIGHT LINE METHOD
b) COST METHOD
c) REDUCING BALANCE METHOD
d) MARKET VALUE

Using straight line method, calcuate the depreciation per annum if the company buys a vehicle for £15,000, keeps it 5 years, and sells for £5,000.
a) £1000
b) £2000
c) £3000
d) £3500

Annual calculation of depreciation is shown in which final account
b) BALANCE SHEET
c) PROFIT AND LOSS ACCOUNT
d) BANK ACCOUNT

The total depreciation calculated to date is shown in which final account
a) BALANCE SHEET
c) BANK ACCOUNT
d) PROFIT AND LOSS ACCOUNT

The depreciation calculations are recorded in which ledger account
a) asset account
b) bank account
c) expense account
d) provision for depreciation account

Using the reducing balance method, calcuate depreciation for year 4. The annual rate is 10%. The asset cost £20,000.
a) 1800
b) 2000
c) 1458
d) 1620

The net book value of the companies vehicles is £15,000. The current market value of the vehicles is £12,500. How much is this year's depreciation?
a) £5,000
b) £2,500
c) £27,500
d) £12,500

a) COST ANNUAL DEPRECIATION BALANCE
b) COST TOTAL DEPRECIATION NET BUYING VALUE
c) COST TOTAL DEPRECIATION NET BOOK VALUE
d) CASH TOTAL DEPRECIATION NET BOOK VALUE

Which reason for depreciation is untrue?
a) wear and tear
b) fit for purpose
d) obselete

Which SSAP covers depreciation?
a) 10
b) 11
c) 12
d) 13

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TEACHERS / EDUCATORS