Introduction to Fixed Assets (Grade 12 NSC Matric Accounting): Quizzes
📚Quizzes
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 fixed assets in a business?
What is the primary purpose of fixed assets in a business?
To support daily operations over time
Which of these would be considered a fixed asset for a bakery?
Which of these would be considered a fixed asset for a bakery?
Delivery trucks for transporting goods
What principle requires businesses to record fixed assets at actual amount paid?
What principle requires businesses to record fixed assets at actual amount paid?
Historical cost principle
A truck costs R25,000 plus R2,000 in modifications for business use. What cost is recorded?
A truck costs R25,000 plus R2,000 in modifications for business use. What cost is recorded?
R27,000
What must an asset register contain for each fixed asset?
What must an asset register contain for each fixed asset?
Purchase dates, costs, and depreciation
What causes fixed assets to lose value over time?
What causes fixed assets to lose value over time?
Wear, tear, and obsolescence
How does the straight-line depreciation method work?
How does the straight-line depreciation method work?
Spreads cost evenly over useful life
What is another name for the carrying value depreciation method?
What is another name for the carrying value depreciation method?
Diminishing balance method
Why must businesses regularly monitor their fixed assets?
Why must businesses regularly monitor their fixed assets?
To verify existence and prevent theft
What must be done when calculating year-end depreciation for sold assets?
What must be done when calculating year-end depreciation for sold assets?
Include depreciation up to sale date