Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life and is used to account for declines in value over time. Some simple accounting questionswhen selecting a partial-year depreciation policy, the accountant should choose a method that: select one: conforms. Questions and answers fixed assets 1 question: what is depreciation answer: depreciation is a systematic and rational means of allocating the net cost of an asset over its useful life. The method of determining depreciation that yields successive reductions in the periodic depreciation charge over the estimated life of the assets is a time-valuation b straight-line. Which accounting method depreciation is greatest in the first year and declines each year after that acc 201 ch 3 practice questions 55 terms statement of.
Note that the end result for accounting questions is the same: depreciation always reduces pre-tax income what happens when accrued compensation goes up by $10 for this question, confirm that the accrued compensation is now being recognized as an expense (as opposed to just changing non-accrued to accrued compensation. Depreciation interview questions and answers on topics like causes, needs, calculation methods of depreciation, straight line method, advantages & limitations etc questions for freshers and experienced for bank interview, competitive exams, placement interview, finance interview, manager interview, university exams etc. Chapter 8 - accounting for depreciation and income taxes this activity contains 10 questions an asset with a first cost of $100,000 is depreciated over 5-year period. Accounting interview questions depreciation expense: it is the amount of depreciation that is reported on the income statement basically, it is the amount that.
For multiple-choice and true/false questions, simply press or click on what you think is the correct answer for fill-in-the-blank questions press or click on the blank space provided if you have difficulty answering the following questions, learn more about this topic by reading our depreciation. Test your knowledge of basic accounting with multiple choice questions and quizzes contra asset accounts have a credit balance such as accumulated depreciation. Depreciation is a systematic and rational process of distributing the cost of tangible assets over the life of assets principles of accounting.
Depreciation expense is used in accounting to allocate the cost of a tangible asset over its useful life in other words, it is the reduction of value in an asset over time due to usage, wear and tear, or obsolescence. Test and improve your knowledge of accounting for depreciation with fun multiple choice exams you can take online with studycom. Accounting for depreciation of fixed assets (page 1) [if you need more questions and answers e-books on subjects like bookkeeping, financial accounting, costing/managerial accounting and financial.
The declining balance method is a widely used form of accelerated depreciation in which some percentage of straight line depreciation rate is used a usual practice is to apply a 200% or 150% of the straight line rate to calculate depreciation expense for the period. Sap fico - asset accounting interview questions sap fico - asset accounting interview questions sign in how many depreciation areas can be defined for a. In depreciation:- depreciation review questions accounts assignment, get the best accounting assignment and homework help by our high experience accounting experts. Cfa level 1 - depreciation accounting this sections covers depreciation accounting includes formulas and sample calculations for a few common methods of finding depreciation.
Sorry for the slightly non- quickbooks question but y'all seem to know many other accounting related questions suppose someone starts a new business. A suggested approach of best practice when answering exam questions on this topic - two exam questions aae answered - depreciation of fixed assets - esti. The financial accounting exam covers skills and concepts that are generally taught in a first-semester undergraduate financial accounting course the exam contains approximately 75 questions to be answered in 90 minutes. An accountant uses depreciation is to allocate the cost of a fixed asset over the years of its useful life the straight-line depreciation method is the most popular type because it allocates the same amount of depreciation to each year the asset is in use the following practice questions show the.
Accounting questions - download as word doc (doc / docx), pdf file (pdf), text file (txt) or read online necessary accounting problems. Every accounting period, depreciation of asset charged during the year is credited to the accumulated depreciation account until the asset is disposed accumulated depreciation is subtracted from the asset's cost to arrive at the net book value that appears on the face of the balance sheet. Journal entry question 6 - depreciation 10 percent on plant & machinery 7 - goods costing 20,000 destroyed by fire advertise on accounting-basics-for.