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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is depreciation?
💡 Hint: Consider how assets lose worth.
Question 2
Easy
What would you calculate if the book value is 28 lakh?
💡 Hint: Remember the depreciation formula.
Practice 4 more questions and get performance evaluation
Interactive Quizzes
Engage in quick quizzes to reinforce what you've learned and check your comprehension.
Question 1
What is the formula for calculating depreciation?
- D = Book Value / 0.4
- D = 0.4 * Book Value
- D = Book Value + Depreciation
💡 Hint: Think about how depreciation is typically calculated.
Question 2
True or False: The economic life of a machine is the period in which it incurs the highest operating costs.
- True
- False
💡 Hint: Consider when it's no longer cost-effective to maintain.
Solve 1 more question and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
You have a machine valued at 35 lakh initially which also depreciates at 0.4. Calculate its book value after two years considering the annual operating cost is 15 lakh.
💡 Hint: Calculate year by year.
Question 2
Discuss why it is beneficial to re-evaluate machinery every few years regarding the maximum profit method.
💡 Hint: Consider profit trends over time.
Challenge and get performance evaluation