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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is depreciation?
💡 Hint: Think about what happens to items like machines and vehicles over years.
Question 2
Easy
What is book value?
💡 Hint: Consider its original purchase price and how it declines.
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 depreciation for a machine valued at 2.8 million rupees with a rate of 0.4?
- 1.12 million
- 1.68 million
- 2.8 million
💡 Hint: Use the formula for depreciation.
Question 2
True or False: The economic life of machinery is the period during which it remains profitable.
- True
- False
💡 Hint: Consider the meaning of profitability in relation to time.
Solve and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
If a machine initially costs 4 million rupees with a depreciation rate of 0.2, calculate its book value after three years.
💡 Hint: Remember to subtract annual depreciation each year from the previous year's book value.
Question 2
Using the maximum profit method, if the annual profit from a machine drops by 100,000 annually and was 1 million in the first year, how long before it reaches economic life?
💡 Hint: Think about the downward trend and calculate when profit will no longer justify the machine's costs.
Challenge and get performance evaluation