Practice Causes of Depreciation - 18.2 | 18. Depreciation Accounting | Management 1 (Organizational Behaviour/Finance & Accounting)
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Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

Define wear and tear in your own words.

💡 Hint: Think about how your personal items lose quality over time.

Question 2

Easy

What does obsolescence mean?

💡 Hint: Consider electronics and how quickly they become old-fashioned.

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 is the primary cause of depreciation due to usage?

  • Wear and Tear
  • Obsolescence
  • Depletion

💡 Hint: Think of the condition of shoes after long use.

Question 2

True or False: Obsolescence occurs when an asset becomes outdated.

  • True
  • False

💡 Hint: Look at how quickly tech advances.

Solve and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

If a factory has machines that have endured heavy usage for five years, how would you assess their wear and tear for depreciation purposes?

💡 Hint: Use depreciation methods to evaluate value loss.

Question 2

Analyze how companies could mitigate risks associated with obsolescence in their asset management strategies.

💡 Hint: Consider how tech firms keep releasing new versions.

Challenge and get performance evaluation