QCE Accounting Unit 3 Topic 1

What is the primary purpose of depreciation in accounting?

• To increase the value of an asset over time

• To allocate the cost of an asset over its useful life

• To determine the market value of an asset

• To calculate the resale value of an asset

Which of the following is a method of calculating depreciation?

• Historical cost method

• Straight-line method

• Accumulated cost method

• Net present value method

What does the historical cost principle state?

• Assets should be recorded at their current market value

• Assets should be recorded at the amount paid at the time of purchase

• Assets should be recorded at their replacement cost

• Assets should be recorded at their depreciated value

What is the role of an asset register in a business?

• To record the market value of all assets

• To track the purchase, maintenance, and disposal of non-current assets

• To calculate the depreciation of assets

• To determine the resale value of assets

How does cloud computing impact business data and information?

• It decreases the security of business data

• It increases the cost of data storage

• It allows for more flexible and scalable data management

• It eliminates the need for data backups

What is the difference between capital expenditure and other expenditure?

• Capital expenditure is for short-term benefits, while other expenditure is for long-term benefits

• Capital expenditure is for acquiring or improving non-current assets, while other expenditure is for day-to-day operations

• Capital expenditure is recorded as an expense, while other expenditure is recorded as an asset

• Capital expenditure is tax-deductible, while other expenditure is not

Which of the following is a control measure to secure business data and information?

• Using outdated software

• Implementing strong password policies

• Allowing unrestricted access to all employees

• Sharing passwords among team members

What is the relationship between historical cost principle and accumulated depreciation?

• Historical cost principle increases accumulated depreciation

• Historical cost principle is unrelated to accumulated depreciation

• Historical cost principle provides the initial value from which accumulated depreciation is subtracted

• Historical cost principle decreases accumulated depreciation

How is the gain or loss on the sale of a non-current asset determined?

• By comparing the sale price to the original purchase price

• By comparing the sale price to the book value of the asset

• By comparing the sale price to the market value of the asset

• By comparing the sale price to the accumulated depreciation

What is a potential issue with outsourcing accounting processes?

• Increased control over financial data

• Reduced costs and increased efficiency

• Loss of control over sensitive financial information

• Improved accuracy of financial records