Accounting Multiple Choice Question – 28 May 2021

A business buys a computer for £2,200 on 1 January 2019.

The computer will be used for four years, after which time it will be sold for £280. The business uses the straight-line method of depreciation. 

What is the depreciation charge for the year ended 31 December 2020?

Select ONE answer:

1. £480
2. £550
3. £960
4. £1,100

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 1

1. Correct ==> (£2,200 / 4) – £280 = £480 p.a.
2. Not correct
3. Not correct
4. Not correct

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