Depreciation and Revaluation of Fixed Assets (Leaving Cert Accounting): Quizzes
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10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is the key characteristic that distinguishes fixed assets from current assets?
What is the key characteristic that distinguishes fixed assets from current assets?
Fixed assets provide benefits over years
What is the main purpose of charging depreciation?
What is the main purpose of charging depreciation?
To match asset cost with revenue earned
A machine costs €8,000 with 10% straight-line depreciation. What is annual depreciation?
A machine costs €8,000 with 10% straight-line depreciation. What is annual depreciation?
€800
How does reducing-balance depreciation differ from straight-line in later years?
How does reducing-balance depreciation differ from straight-line in later years?
Charges lower amounts in later years
Asset cost €12,000, accumulated depreciation €7,000. What is the net book value?
Asset cost €12,000, accumulated depreciation €7,000. What is the net book value?
€5,000
Which three accounts are always affected when disposing of a fixed asset?
Which three accounts are always affected when disposing of a fixed asset?
Asset, Provision, Disposal
In a disposal account, what does a credit balance larger than debit indicate?
In a disposal account, what does a credit balance larger than debit indicate?
Profit on disposal
Which depreciation method best suits computers that lose value quickly initially?
Which depreciation method best suits computers that lose value quickly initially?
Reducing-balance method
Which fixed assets typically increase in value and may be revalued upwards?
Which fixed assets typically increase in value and may be revalued upwards?
Land and buildings
What is the correct journal entry to record annual depreciation expense?
What is the correct journal entry to record annual depreciation expense?
Dr P&L, Cr Provision