Skip to main content

Depreciation - short answer questions


Question 1

Explain the process of straight-line depreciation.

Question 2

Explain the term 'revaluation reserve'.

Question 3

Explain why firms include depreciation in their accounts.

Question 4

A company purchases a new refrigerated articulated delivery vehicle for $120,000. It is to be depreciated over 4 years, when it will have a residual value (resale value) of $20,000. What will be the written down book value of the vehicle after two years of use?