Overview of Fixed Assets (Grade 11 NSC Matric Accounting): Quizzes
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Practise the questions
10 questions from this quiz
What does an asset represent in accounting?
What does an asset represent in accounting?
Item owned providing future benefits
How long does a business typically use non-current assets?
How long does a business typically use non-current assets?
More than one year
What is another name for fixed assets?
What is another name for fixed assets?
Tangible assets
A machine costs R10,000, delivery R500, installation R300. What is the cost price?
A machine costs R10,000, delivery R500, installation R300. What is the cost price?
R10,800
What are the two key purposes of depreciation?
What are the two key purposes of depreciation?
Recording expense usage & tax benefit
What stays constant each year with the straight line depreciation method?
What stays constant each year with the straight line depreciation method?
Depreciation expense amount
What happens to depreciation expense over time using diminished balance method?
What happens to depreciation expense over time using diminished balance method?
It decreases each year
How do you calculate carrying value?
How do you calculate carrying value?
Cost price - Accumulated depreciation
What is the minimum carrying value an asset can show in business records?
What is the minimum carrying value an asset can show in business records?
R1
After 3 years, which method shows higher carrying value for the same asset?
After 3 years, which method shows higher carrying value for the same asset?
Diminished balance method