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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What does depreciation refer to?
💡 Hint: Think about what happens to objects as they are used.
Question 2
Easy
Name one tangible fixed asset that can depreciate.
💡 Hint: Consider what types of items businesses own.
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 depreciation allow businesses to do?
- Increase profits
- Reflect true asset value
- Ignore expenses
💡 Hint: Think about the relationship between asset value and business reporting.
Question 2
True or False: Depreciation can only apply to intangible assets.
- True
- False
💡 Hint: Consider the nature of the assets being depreciated.
Solve 1 more question and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
You manage a fleet of delivery vans purchased for ₹5,00,000 each with a useful life of 10 years and a vehicle value drop to ₹1,00,000 at the end. Calculate the straight-line method depreciation each year.
💡 Hint: Remember the formula for straight-line depreciation.
Question 2
A company has machinery worth ₹50,000 expected to last 5 years but is becoming obsolete due to emerging technology. What factors should they consider for depreciation?
💡 Hint: Think about what directly affects the machine's utility.
Challenge and get performance evaluation