Writing Off Plant Assets from Financial Statements

Instructions:

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

question 1 of 3

If the book value of a plant is higher than its actual value, the accountant debits _____ for the difference between the actual and book value.

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1. Changes in the balance sheet are recorded in the _____.

2. As accountants, we record _____ for the difference between book value and the actual value of an asset, when the book value is higher than the actual value.

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About This Quiz & Worksheet

There are five questions found in this quiz and worksheet that will test you on different aspects of recording plant asset removal in accounting. The quiz is multiple-choice and can be completed in very little time.

Quiz & Worksheet Goals

Taking this quiz will measure what you know about the following:

  • Recording the difference between actual and book value
  • Where changes in the balance sheet are recorded
  • Documenting the asset from its book value to its actual value
  • Calculating the book value of an asset
  • Definition of 'accumulated depreciation'

Skills Practiced

  • Knowledge application - use your knowledge to answer questions about recording plant asset removal in accounting
  • Interpreting information - verify that you can read information about 'accumulated depreciation' and interpret it correctly
  • Information recall - access the knowledge you've gained about calculating the book value of an asset

Additional Learning

To continue your studies on this topic, be sure to review the related lesson titled Writing Off Plant Assets from Financial Statements. Here's the type of information you'll find in this lesson:

  • How to calculate net worth
  • Definition of 'write-off'
  • Examples of journal entries for new assets
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