Quiz 60: Straight Line Method of Depreciation

Test your knowledge of double entry bookkeeping with our straight line method of depreciation quiz.

Straight line depreciation is one method of calculating the depreciation expense on long term assets such as property, plant, and equipment.

Not Ready for the Quiz?

If you need a refresher course on the use of the straight line method of depreciation, take a look at our tutorial on the subject and our basics of bookkeeping tutorials.

Our straight line depreciation schedule calculator is available if you need assistance in completing the quiz.

Start the Straight Line Method of Depreciation Quiz

For each question click on an answer to reveal whether its Right! or Wrong.

 

1. What is the depreciation expense using the straight line method on a asset costing 10,000 if it has a useful life of 4 years and a salvage value of 2,000?
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2. If an asset has a useful life of 4 years, what is the annual straight line depreciation rate?
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3. What is the depreciation expense using the straight line method on a asset costing 15,000 if it has a useful life of 5 years and a salvage value of 3,000?
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4. If the annual depreciation expense using the straight line method is 1,500 and the asset has a cost of 8,000 and a useful life of 3 years, what is the salvage value of the asset?
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5. If an asset has a cost of 6,000, a salvage value of 1,500, and the annual straight line method depreciation expense is 1,125, what is the useful life of the asset?
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6. If the straight line method depreciation rate used on an asset is 5%, what is the expected useful life of the asset?
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7. Another name for salvage value is?
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8. Using the straight line method the depreciation expense each year is?
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9. If an asset has a cost of 12,000 and a salvage value of 3,000, what is the depreciable cost using the straight line method?
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10. If the depreciable cost of an asset is 16,000 and it has a useful life of 8 years, what is the annual depreciation expense?
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Try Another Double Entry Bookkeeping Quiz

This straight line method of depreciation quiz is one of many of our online quizzes which are used to test your knowledge of double entry bookkeeping, discover another at the links below.

Last modified March 14th, 2017 by Michael Brown

About the Author

Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years in all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a BSc from Loughborough University.

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Posted By: Michael Brown ,
Depreciation