Practice - Introduction to Depreciation
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Practice Questions
Test your understanding with targeted questions
What does depreciation refer to?
💡 Hint: Think about what happens to objects as they are used.
Name one tangible fixed asset that can depreciate.
💡 Hint: Consider what types of items businesses own.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What does depreciation allow businesses to do?
💡 Hint: Think about the relationship between asset value and business reporting.
True or False: Depreciation can only apply to intangible assets.
💡 Hint: Consider the nature of the assets being depreciated.
1 more question available
Challenge Problems
Push your limits with advanced challenges
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.
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.
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