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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is the formula for calculating depreciation using the Sum of the Years' Digits method?
💡 Hint: Think about the role of remaining years and initial costs.
Question 2
Easy
Define the Double Declining Balance method in simple terms.
💡 Hint: Focus on speed of depreciation.
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 Yearly Depreciation
- Sum of the Years' Digits
- Single Year Depreciation
💡 Hint: Think about how years contribute to depreciation.
Question 2
True or False: Double Declining Balance considers salvage value in its initial calculations.
- True
- False
💡 Hint: Recall how DDB operates.
Solve 2 more questions and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
A machinery costing ₹5,000,000 with a salvage value of ₹200,000 has a useful life of 10 years. Calculate the first and second-year depreciation using both SYD and DDB methods.
💡 Hint: Remember to account for annual depreciation reductions.
Question 2
A business needs to switch from DDB to SYD in year 8 due to declining fiscal performance expected to lead to lower asset valuations. How to ensure book value aligns with salvage at year end?
💡 Hint: Check values stepwise to avoid depreciation pitfalls.
Challenge and get performance evaluation