Depreciation
Systematic allocation of an asset's cost over its useful life.
The systematic allocation of the depreciable amount of an asset over its useful life, charged to profit or loss.
Passende Übungsfragen
☝️ Single
The receivables ledger control account shows a balance of £48,200, but the total of the individual customer balances is £47,900. Which of the following could explain the difference?
Closing inventory has been undervalued
Depreciation has been charged twice
The business's bank balance has been overstated
A sales invoice of £300 was posted to the control account but omitted from the individual customer's account
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☝️ Single
A machine cost £24,000 and is depreciated at 25% per annum on the reducing balance method. What is the depreciation charge for the SECOND year of ownership?
£18,000
£6,000
£4,500
£12,000
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☝️ Single
A vehicle cost £18,000, has an estimated residual value of £3,000 and a useful life of 5 years. What is the annual straight-line depreciation charge?
£3,600
£600
£6,600
£3,000
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☝️ Single
Equipment originally costing £12,000 with accumulated depreciation of £9,000 is sold for £4,000. What is the profit or loss on disposal?
Loss of £1,000
Profit of £1,000
Profit of £4,000
Loss of £9,000
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☝️ Single
Profit before tax is £90,000. Depreciation was £12,000. Trade receivables increased by £8,000, inventory increased by £5,000 and trade payables decreased by £3,000. What is cash generated from operations (before tax and interest) using the indirect method?
£86,000
£118,000
£62,000
£102,000
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