JAMB and WAEC Accounts (Principles of Accounts) questions: Depreciation of non-current assets

34 questions with answers and explanations. Tap an option to check yourself.

1. Question 1· Depreciation of non-current assets· JAMB

   Under the straight-line method, depreciation each year is

   • Athe same amount
   • Ba fixed percentage of book value
   • Cincreasing
   • Dzero

   Show answer

   Explanation and discussion

2. Question 2· Depreciation of non-current assets· WAEC

   Which asset is not normally depreciated?

   • Amachinery
   • Bmotor vehicles
   • Cfreehold land
   • Dfurniture

   Show answer

   Explanation and discussion

3. Question 3· Depreciation of non-current assets· WAEC

   A van costing ₦1,200,000 is depreciated at 25% a year on the reducing balance. Its value after two years is

   • A₦900,000
   • B₦600,000
   • C₦675,000
   • D₦300,000

   Show answer

   Explanation and discussion

4. Question 4· Depreciation of non-current assets· WAEC

   The carrying (net book) value of an asset is

   • Aits market value
   • Bcost plus depreciation
   • Ccost minus accumulated depreciation
   • Dits residual value

   Show answer

   Explanation and discussion

5. Question 5· Depreciation of non-current assets· JAMB

   A machine bought for ₦800,000 is depreciated at 10% per annum on the reducing balance. Depreciation in year 2 is

   • A₦80,000
   • B₦72,000
   • C₦64,800
   • D₦160,000

   Show answer

   Explanation and discussion

6. Question 6· Depreciation of non-current assets· JAMB

   An asset costing ₦300,000 with accumulated depreciation of ₦180,000 is sold for ₦100,000. The loss on disposal is

   • A₦20,000
   • B₦80,000
   • C₦200,000
   • D₦120,000

   Show answer

   Explanation and discussion

7. Question 7· Depreciation of non-current assets· WAEC

   Which of these is NOT a cause of depreciation?

   • Apassage of time
   • Bwear and tear
   • Cobsolescence
   • Dinflation

   Show answer

   Explanation and discussion

8. Question 8· Depreciation of non-current assets· JAMB

   Depreciation is caused by

   • Ainflation only
   • Bwear and tear, obsolescence and passage of time
   • Csales
   • Ddrawings

   Show answer

   Explanation and discussion

9. Question 9· Depreciation of non-current assets· WAEC

   A machine cost ₦500,000 with a residual value of ₦50,000 and a life of 5 years. Straight-line depreciation per year is

   • A₦100,000
   • B₦90,000
   • C₦110,000
   • D₦50,000

   Show answer

   Explanation and discussion

10. Question 10· Depreciation of non-current assets· JAMB

    Accumulated depreciation is

    • Athe annual charge only
    • Bthe cost of the asset
    • Cthe selling price
    • Dthe total depreciation charged since the asset was bought

    Show answer

    Explanation and discussion

11. Question 11· Depreciation of non-current assets· JAMB

    A machine costing ₦600,000 is depreciated at 20% per annum on the reducing balance. Its net book value at the end of year 2 is

    • A₦384,000
    • B₦360,000
    • C₦480,000
    • D₦96,000

    Show answer

    Explanation and discussion

12. Question 12· Depreciation of non-current assets· WAEC

    A machine bought for ₦300,000 is sold for ₦120,000 when its accumulated depreciation is ₦150,000. Find the result on disposal.

    • Aa loss of ₦30,000
    • Ba profit of ₦30,000
    • Ca loss of ₦180,000
    • Da profit of ₦120,000

    Show answer

    Explanation and discussion

13. Question 13· Depreciation of non-current assets· JAMB

    The sum-of-the-years'-digits method of depreciation charges

    • Athe same amount each year
    • Bmore depreciation in early years
    • Cnothing in the first year
    • Dmore in later years

    Show answer

    Explanation and discussion

14. Question 14· Depreciation of non-current assets· JAMB

    Under the reducing balance method, the depreciation charge

    • Arises each year
    • Bstays the same
    • Cfalls each year
    • Dis nil in the first year

    Show answer

    Explanation and discussion

15. Question 15· Depreciation of non-current assets· JAMB

    A van costing ₦800,000 is depreciated at 25% per annum on the reducing balance. The depreciation for the second year is

    • A₦150,000
    • B₦200,000
    • C₦400,000
    • D₦600,000

    Show answer

    Explanation and discussion

16. Question 16· Depreciation of non-current assets· WAEC

    An asset costing ₦400,000 is depreciated at 20% a year on the reducing balance. Find the depreciation for the second year.

    • A₦80,000
    • B₦64,000
    • C₦160,000
    • D₦72,000

    Show answer

    Explanation and discussion

17. Question 17· Depreciation of non-current assets· WAEC

    An asset bought for ₦30,000 has accumulated depreciation of ₦12,000. Its net book value is

    • A₦30,000
    • B₦42,000
    • C₦12,000
    • D₦18,000

    Show answer

    Explanation and discussion

18. Question 18· Depreciation of non-current assets· WAEC

    Depreciation charged for the year is shown in the

    • Atrading account
    • Bprofit and loss account
    • Ccash book
    • Dsales journal

    Show answer

    Explanation and discussion

19. Question 19· Depreciation of non-current assets· JAMB

    A lorry cost ₦2,400,000, has a residual value of ₦400,000 and a useful life of 4 years. Find the annual straight-line depreciation.

    • A₦400,000
    • B₦600,000
    • C₦500,000
    • D₦700,000

    Show answer

    Explanation and discussion

20. Question 20· Depreciation of non-current assets· WAEC

    A machine costs ₦500,000, has a residual value of ₦50,000 and a life of 5 years. Find the annual straight-line depreciation.

    • A₦110,000
    • B₦100,000
    • C₦90,000
    • D₦450,000

    Show answer

    Explanation and discussion