Practice Journal Entries - 18.6.1 | 18. Depreciation Accounting | Management 1 (Organizational Behaviour/Finance & Accounting)
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18.6.1 - Journal Entries

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is the first step when making a journal entry for depreciation?

💡 Hint: Think about how expenses are recorded.

Question 2

Easy

What does crediting the Asset Account signify?

💡 Hint: Consider the asset's depreciation over its useful life.

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 first journal entry made when accounting for depreciation?

  • Debit Asset Account
  • Debit Depreciation Account
  • Credit Provision for Depreciation

💡 Hint: Think about which account represents the expense incurred.

Question 2

True or False: Provision for Depreciation is an optional entry.

  • True
  • False

💡 Hint: Consider long-term asset management needs.

Solve 2 more questions and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A corporation has a delivery truck that cost $50,000 with a residual value of $5,000 and a useful life of 10 years. Calculate the annual straight-line depreciation and illustrate the journal entry for the first year.

💡 Hint: Use the straight-line method formula to determine the depreciation expense.

Question 2

Discuss how the choice between directly charging depreciation versus using a provision could impact cash flow management for a company.

💡 Hint: Consider how each method relates to future asset replacements.

Challenge and get performance evaluation