Asset Register and Residual Value / Scrap Value of R1 (Grade 12 NSC Matric Accounting): Quizzes
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Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is the primary purpose of an asset register?
What is the primary purpose of an asset register?
Track fixed assets over time
What formula shows the relationship in asset registers?
What formula shows the relationship in asset registers?
How does the straight line depreciation method calculate depreciation?
How does the straight line depreciation method calculate depreciation?
Fixed % of original cost price yearly
How does the diminishing value method calculate depreciation?
How does the diminishing value method calculate depreciation?
% of current carrying value yearly
What is the key difference between straight line and diminishing value methods?
What is the key difference between straight line and diminishing value methods?
Straight line stays constant, diminishing decreases
What is the R1 scrap value principle in South African accounting?
What is the R1 scrap value principle in South African accounting?
Assets can't be depreciated below R1
What happens when an asset's carrying value reaches R1?
What happens when an asset's carrying value reaches R1?
No further depreciation is allowed
If you sell an asset with R1 carrying value for R40,000 cash, what is the profit?
If you sell an asset with R1 carrying value for R40,000 cash, what is the profit?
R39,999
When is the R1 rule often NOT applied in practice?
When is the R1 rule often NOT applied in practice?
When asset is close to but not at R1
Vehicle costs R80,000. Using 20% straight line method, what is year 1 depreciation?
Vehicle costs R80,000. Using 20% straight line method, what is year 1 depreciation?
R16,000