Self Assessment Quizzes

CHAPTER 23: Section 2 Calculating Depreciation

	1.	Using the straight line method, if an asset was purchased for $21,000 on January 2, and has an estimated disposal value of $3,000 and a useful life of 7 years, the yearly depreciation is

		a.	$3,000
		b.	$2,571.42
		c.	$3,428.57
		d.	$4,927.98

	2.	If depreciation for a delivery truck is $4,000 for a year, but the truck is only used for eight months of the first year, the depreciation for the first year will be

		a.	$2,667
		b.	$2,067
		c.	$4,000
		d.	$3,333

	3.	Using the straight-line method, an asset was purchased for $18,000 on January 2 has an estimated disposal value of $2,500 and a useful life of 5 years. At the end of 3 years the accumulated depreciation is

		a.	$9,300
		b.	$10,800
		c.	$3,600
		d.	$7,200

	4.	Original cost of an asset less accumulated depreciation is called

		a.	cost allocation
		b.	cumulative value
		c.	asset value
		d.	book value

	5.	The detailed information that a business keeps for each plant asset and the depreciation for that asset is called

		a.	depreciation records
		b.	book value
		c.	plant asset records
		d.	depreciation schedule