Day: November 10, 2019

The net book value of a fixed asset, other then freehold land, which has not been revalued, is …..

Select ONE answer:

1. the amount it cost to acquire it.
2. the amount it would cost to buy it, or a similar asset, now.
3. the amount it cost to acquire it less the aggregate (total) depreciation charged on it.
4. the amount it cost to acquire it less its estimated scrap value.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. is the asset’s actual cost.
2. is the asset’s replacement cost
3. Correct
4. is the total amount of depreciation to be charged over the life of the asset.

 

This work is licensed under a Creative Commons Attribution 4.0 International License.