Reporting Depreciation on the Balance Sheet

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 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?

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1. 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?

2. 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?

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About This Quiz & Worksheet

Depreciation is reported differently on a balance sheet than on a monthly income statement. This quiz will make sure you know the difference and help you practice this when given basic scenarios.

Quiz & Worksheet Goals

For this assessment you will:

  • Determine the annual depreciation when given the cost and life expectancy of an asset
  • Identify the depreciation amount to be reported on a balance sheet or income statement in a given scenario
  • Answer questions about the roles of income statements and balance sheets

Skills Practiced

This quiz and worksheet will test students on the following skills:

  • Problem solving - use acquired knowledge to solve story problems involving depreciation.
  • Interpreting information - verify that you can read information regarding reporting depreciation and interpret it correctly
  • Distinguishing differences - know the difference between a balance sheet and an income statement
  • Knowledge application - use your knowledge to answer questions about reporting depreciation in a given scenario.

Additional Learning

The accompanying lesson, Reporting Depreciation on the Balance Sheet, has more information about this subject, including:

  • A real life scenario illustrating why depreciation should be reported
  • How to report depreciation on the balance sheet
  • How to report depreciation on the income statement
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