Depreciation
7 practice questionsFinancial AccountingStep-by-step solutions
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1
Accumulated depreciation is reported on the balance sheet as a:
A.Liability
B.Contra-asset reducing the asset's value
C.Revenue
D.Expense
2
Using straight-line depreciation, an asset costing $10,000 with a 5-year life and no residual value depreciates by how much per year?
A.$1,000
B.$2,000
C.$5,000
D.$10,000
3
The reducing-balance (declining-balance) depreciation method applies a fixed percentage each year to the asset's:
A.Original cost
B.Net book value (carrying amount)
C.Salvage value
D.Sales revenue
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