accounting starter

what is this purpose of making provisions for depreciation

• to make a provision for repairs

• to make cash availble to replace fixed assets

• to show the current market value of the asset

• to charge the cost of usage of asset against profit

in the accounting records, the fixed assets are normally recorded

• at cost

• at book value

• at scrap value

• at replacement value

which of these is NOT a depreciation method

• straight line method

• reducing balance method

• breakeven method

• diminishing method

full depreciation in the year of purchase and no depreciation charged in the year of sale

• true

• false

what method is used to depreciate tools and crates

• straight line method

• revaluation method

• diminishing balance method

• reducing balance method

depreciation follows

• money measurment concept

• going concern concept

• matching concept

• historical cost concept