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Accounting for Depreciation Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. A printer was purchased for $20,000 with a life expectancy of 20 years. What is the depreciation for year 1 if you purchased it in May?

Question 2 2. A printer worth $30,000 with a life expectancy of 5 years has a yearly depreciation of what using the straight-line depreciation method?

Question 3 3. You are a professional food photographer. The camera you use for your work cost you $10,000. It has a life expectancy of 20 years. What is your annual depreciation?

Question 4 4. Using the double declining balance method, calculate the depreciation percentage per year of a vehicle with a life expectancy of 4 years.

Question 5 5. Which depreciation method allocates the same percentage of depreciation every year for the useful life of the asset?

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Question 6 6. A single-serve coffee machine worth $30,000 can make 60,000 cups of coffee in its life. Using the units of production depreciation method, what is the depreciation for the year where 5,000 cups of coffee were made?

Question 7 7. A hybrid car used for work was bought for $30,000 with a life expectancy of 10 years. What is the depreciation amount you put in your monthly income statement?

Question 8 8. What is the value left over at the end of an asset's useful life called?

Question 9 9. What is the current value of a piece of equipment that had an original purchase price of $25,000, was depreciated by $4,000 per year for the last two years, and has a salvage value of $2,500?

Question 10 10. To calculate double-declining balance depreciation, you need to know all of the following except

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Question 11 11. What does the balance sheet tell you about a business?

Question 12 12. What is the full year depreciation for a car that was purchased for $20,000 with a life expectancy of 20 years?

Question 13 13. Which report gives you the depreciation for just one month?

Question 14 14. Use the double declining balance method to calculate the depreciation amount for year 2 of a printer purchased for $40,000 with a life of 10 years.

Question 15 15. The camera you use for work cost you $10,000 to purchase. With a life expectancy of 20 years, what is the depreciation amount on the balance sheet after 4 years?

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Question 16 16. A camera with a value of $20,000 has a life expectancy of 20 years. What is the percentage each year that you can take using the straight-line depreciation method?

Question 17 17. What will be the balance in the accumulated depreciation account for an asset that was depreciated by $500 per year for four years?

Question 18 18. Which of the following will result in a change in estimate?

Question 19 19. What type of account is accumulated depreciation?

Question 20 20. Which method of depreciation is used to depreciate land?

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Question 21 21. Using the sum of the years' digits method, calculate the depreciation for year 1 of a printer purchased for $20,000 with a life expectancy of 3 years.

Question 22 22. Accumulated depreciation is the difference between:

Question 23 23. What type of balance can you expect to see in an accumulated depreciation account?

Question 24 24. An item has an original cost of $5,000 and an estimated lifetime of 5 years. Calculate a full-year depreciation.

Question 25 25. The full year depreciation of a mobile phone is $450. What is the partial-year depreciation of the item if it was owned for only 4 months?

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Question 26 26. A photocopier has a value of $2,000 and a life of 5 years. What is the percentage depreciation each year using the double declining balance method?

Question 27 27. A computer has a life expectancy of 3 years. Use the sum of the years' digits method to calculate the depreciation percentage for year 2.

Question 28 28. Use the sum of the years' digits method to calculate the depreciation percentage for year 4 for a printing press purchased for $150,000 with a life of 20 years.

Question 29 29. A car cost $40,000 to purchase. It has a life of 10 years. Using the double declining balance depreciation method, what is the value of the car after the second year?

Question 30 30. Which of the following are NOT included when determining the cost of an asset?

Accounting for Depreciation Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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