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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
Define 'salvage value'.
💡 Hint: Consider what an asset is expected to be worth after it's no longer usable.
Question 2
Easy
What is book value?
💡 Hint: Think of it as the net worth of the asset.
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 does SYD stand for?
- Standard Year Depreciation
- Sum of the Years Digits
- Single Year Depreciation
💡 Hint: Think about how years are used in the calculation.
Question 2
True or False: DDB considers salvage value when calculating depreciation.
- True
- False
💡 Hint: Recall how DDB operates during its calculations.
Solve 1 more question and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
A factory purchases a machine for ₹15,000,000, with a salvage value of ₹1,500,000, and a life expectancy of 10 years. Calculate the depreciation for the first three years using SYD.
💡 Hint: Remember to sum the digits first!
Question 2
If a company decides to switch from DDB to straight-line after year 5 because of low book value, detail the necessary steps for the transition.
💡 Hint: Think about how to find the accurate book value first at the end of year 5.
Challenge and get performance evaluation