Straight Line Depreciation Calculation Quiz

What is the first method a business can use to calculate the depreciation of its assets?

• Double-declining balance method

• Activity-based method

• Straight-line method

• Units of production method

What is the historic value of an asset?

• Value of the asset at the end of its expected life

• Value of the asset when it's disposed of

• Value of the asset when initially purchased

• Value of the asset after depreciation

What is residual value of an asset?

• Value of the asset at the end of its expected life

• Value of the asset after depreciation

• Value of the asset when it's disposed of

• Value of the asset when initially purchased

How is depreciation calculated using the straight-line method?

• Historic value minus residual value divided by expected life

• Historic value multiplied by residual value

• Historic value divided by expected life

• Residual value divided by expected life

What is the yearly depreciation expense for the bakery's van?

• £5,000

• £15,000

• £2,500

• £10,000

How is depreciation recorded by a business?

• As an expense on the income statement

• As revenue on the income statement

• As a liability on the balance sheet

• As an asset on the balance sheet