Practice Written Down Value (WDV) Method - 18.5.2 | 18. Depreciation Accounting | Management 1 (Organizational Behaviour/Finance & Accounting)
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Written Down Value (WDV) Method

18.5.2 - Written Down Value (WDV) Method

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Practice Questions

Test your understanding with targeted questions

Question 1 Easy

What is the formula for calculating depreciation using the WDV method?

💡 Hint: Think about what factors you need to multiply.

Question 2 Easy

What happens to the book value after calculating depreciation?

💡 Hint: After calculating, what do you do next?

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

What method calculates depreciation based on a fixed percentage of book value?

Straight Line Method
Written Down Value Method
Sum of Years' Digits Method

💡 Hint: Remember the method that focuses on the value at the year start.

Question 2

In the first year of using WDV, will depreciation usually be higher or lower than a straight-line approach?

Higher
Lower

💡 Hint: Think about how quickly assets lose value initially.

2 more questions available

Challenge Problems

Push your limits with advanced challenges

Challenge 1 Hard

An equipment valued at $20,000 has a depreciation rate of 15%. What will the book value be after three years?

💡 Hint: Apply the percentage decrease each year to the updated book value.

Challenge 2 Hard

A fleet of vehicles are bought for $150,000 and depreciate at 25%. If after one year the company wants to sell them, what will be their value?

💡 Hint: What is 25% of the total value?

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