Accounting Pop Quiz May 25th

1. The depreciation charged each year decreases. Which method of depreciation is this?

a. Straight line
b. Reducing balance method
c. Revaluation method
d. None of the above

2. Accountants use this depreciation method to calculate the depreciation of small items such as
loose tools, stationary, etc. Which method of depreciation is this?

a. Straight line
b. Reducing balance method
c. Revaluation method
d. None of the above

3. Which of the following is not an advantage of the straight line method?

a. It is relatively easy to calculate

b. It is useful when a non-current asset provides equal benefit for each year of its useful life
c. It takes into account the actual rate at which the asset will lose value
d. None of the above

4. This is the value of a non-current asset at the end of its useful lie, what is this?

5. The formula of net book value?

6. What are the two sections in an income statement?

7. Formula for profit of the year?

8. What is a bank overdraft?

9. What is a capital receipt?

10. What is a revenue receipt?

11. Formula for straight line method?

12. Formula for the residual value?

13. What is provision for doubtful debts?