alleryWhat is the sum of the years' digits for an asset with a useful life of 8 years?
- 28
- 32
- 40
- 36
Show answer and solution
Correct answer: D. 36
(n squared + n)/2 with n = 8 gives (64 + 8)/2 = 36.
CA Foundation Depreciation and Amortisation — practice questions — page 2
Explore 82 free Depreciation and Amortisation questions in CA Foundation Accounting. Open each question or exercise to read its content, reference answers and available explanation.
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Showing questions 31–60 of 82.
What is the sum of the years' digits for an asset with a useful life of 8 years?Read the answer and worked solution →An asset costs 70,000, scrap value 10,000, and will produce 6,000 units. Depreciation charge per unit is?Read the answer and worked solution →Asset cost 70,000, scrap 10,000, output 6,000 units. Charge for 1,500 units made?Read the answer and worked solution →A vehicle costing 17,000 with 2,000 salvage is expected to run 50,000 miles. Depreciation per mile is?Read the answer and worked solution →Under units-of-production, depreciation stops when?Read the answer and worked solution →Yearly depreciation of 1,300 on assets with total historical cost 6,500 gives a composite rate of?Read the answer and worked solution →Which situation suits the composite depreciation method?Read the answer and worked solution →Under the composite method, what follows the sale of one asset?Read the answer and worked solution →The group depreciation method suits assets that are?Read the answer and worked solution →A machine costs 16,000 and its residual value after 4 years is 1,000. The reducing balance rate is?Read the answer and worked solution →Double-declining-balance depreciation for an asset with a 5-year life uses what yearly rate?Read the answer and worked solution →An asset with an 8-year life and no scrap value has a straight-line depreciation rate of?Read the answer and worked solution →A machine costing Rs 50,000 with no scrap has a 4-year life. Year 1 depreciation by sum-of-years-digits is?Read the answer and worked solution →What does depreciation allocate over the periods in which an asset is used?Read the answer and worked solution →Which of these is NOT needed to compute periodic depreciation?Read the answer and worked solution →Which statement about depreciation expense and cash is correct?Read the answer and worked solution →Accumulated depreciation is shown in the books as what kind of account?Read the answer and worked solution →Depletion is the term used for the writing off of which type of asset?Read the answer and worked solution →Depreciation is the counterpart of amortisation for which assets?Read the answer and worked solution →Which asset is generally NOT depreciated in the books?Read the answer and worked solution →Which of these is an example of an intangible asset?Read the answer and worked solution →An intangible asset is best described as an asset that?Read the answer and worked solution →IAS 38 defines an intangible asset as an identifiable asset that is?Read the answer and worked solution →Which standard guides the amortisation of intangible assets under IFRS?Read the answer and worked solution →Amortisation of an intangible asset reduces what on the balance sheet?Read the answer and worked solution →Amortisation is shown in the income statement as?Read the answer and worked solution →Amortisation equals acquisition cost less what, spread over useful economic life?Read the answer and worked solution →Which intangible may have an indefinite life and so is not amortised?Read the answer and worked solution →Instead of amortisation, goodwill with indefinite life gets what?Read the answer and worked solution →An impairment charge is recognised when the value of assets does what?Read the answer and worked solution →
Worked practice questions
An asset costs 70,000, scrap value 10,000, and will produce 6,000 units. Depreciation charge per unit is?
- Rs 11.67
- Rs 8
- Rs 10
- Rs 12
Show answer and solution
Correct answer: C. Rs 10
Depreciable amount 60,000 divided by 6,000 units gives Rs 10 per unit.
Asset cost 70,000, scrap 10,000, output 6,000 units. Charge for 1,500 units made?
- Rs 12,500
- Rs 17,500
- Rs 15,000
- Rs 10,000
Show answer and solution
Correct answer: C. Rs 15,000
Rs 10 per unit times 1,500 units equals Rs 15,000.
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