1. What is the depreciation expense using the straight line method on a asset costing 10,000 if it has a useful life of 4 years and a salvage value of 2,000?
a. 2,500
b. 2,000
c. 5,000
2. If an asset has a useful life of 4 years, what is the annual straight line depreciation rate?
a. 25%
b. 33.33%
c. 20%
3. What is the depreciation expense using the straight line method on a asset costing 15,000 if it has a useful life of 5 years and a salvage value of 3,000?
a. 4,000
b. 2,400
c. 3,000
4. If the annual depreciation expense using the straight line method is 1,500 and the asset has a cost of 8,000 and a useful life of 3 years, what is the salvage value of the asset?
a. 3,000
b. 4,000
c. 3,500
5. If an asset has a cost of 6,000, a salvage value of 1,500, and the annual straight line method depreciation expense is 1,125, what is the useful life of the asset?
a. 5 years
b. 3 years
c. 4 years
6. If the straight line method depreciation rate used on an asset is 5%, what is the expected useful life of the asset?
a. 20 years
b. 5 years
c. 10 years
7. Another name for salvage value is?
a. Depreciable cost
b. Residual value
c. Net book value
8. Using the straight line method the depreciation expense each year is?
a. A fixed amount
b. A reducing amount
c. A variable amount
9. If an asset has a cost of 12,000 and a salvage value of 3,000, what is the depreciable cost using the straight line method?
a. 9,000
b. 12,000
c. 3,000
10. If the depreciable cost of an asset is 16,000 and it has a useful life of 8 years, what is the annual depreciation expense?
a. 2,500
b. 4,000
c. 2,000

Answer rating: 100% (QA)

Depreciation is the wear and tear of an asset over the usage of time and can be calculated busing different methods like straight line methodwritten d... View the full answer