18 - Depreciation Accounting
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Practice Questions
Test your understanding with targeted questions
What is depreciation?
💡 Hint: Think about how expenses are accounted for over time.
Name one cause of depreciation.
💡 Hint: Consider factors that reduce asset value.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What does depreciation help match in accounting?
💡 Hint: Consider how accounting reflects economic reality.
True or False: Depreciation is a cash expense.
💡 Hint: Think about cash flow versus accounting records.
1 more question available
Challenge Problems
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A company buys a delivery truck for $40,000. The estimated residual value is $4,000, and the useful life is 8 years. Using the Straight Line Method, calculate annual depreciation and the book value at the end of year 4.
💡 Hint: Break down the problem step by step.
Discuss the implications of changing a depreciation method from Straight Line to WDV for a company that has highlighted lower profits due to depreciation. What factors could justify this change?
💡 Hint: Think about financial strategies and regulatory influences.
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