18.6 - Accounting Treatment of Depreciation
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Practice Questions
Test your understanding with targeted questions
What account is debited when depreciation is charged directly?
💡 Hint: Think of the name of the expense account.
What does the Provision for Depreciation account represent?
💡 Hint: Consider the purpose of holding provisions.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is charged directly to the asset account when depreciation is recorded?
💡 Hint: Think about what expense is recognized.
True or False: Provision for Depreciation is used to increase asset values.
💡 Hint: What is the purpose of setting aside provisions?
1 more question available
Challenge Problems
Push your limits with advanced challenges
A company bought equipment for $12,000 with a residual value of $2,000 and a useful life of 4 years. Prepare the journal entries for the first year using the straight-line method.
💡 Hint: Use the straight-line method to calculate annual depreciation first.
Explain why an organization might prefer to use a provision for depreciation rather than charging it directly.
💡 Hint: Consider the implications of financial health in accounting practices.
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