Accounting 0452 · IGCSE · Accounting for depreciation and disposal of non-current assets

Accounting for depreciation and disposal of non-current assets — practice question

On 1 January 2022, a business purchased two assets, X and Y, at a cost of $2000 each. Asset X is depreciated at 10% per annum by the straight-line method, while asset Y is depreciated at 10% per annum by the reducing balance method. Which statements are correct?

  • Aasset X will be fully depreciated before asset Y: false; in 2022 the depreciation charge is lower for asset X than for asset Y: false
  • Basset X will be fully depreciated before asset Y: false; in 2022 the depreciation charge is lower for asset X than for asset Y: true
  • Casset X will be fully depreciated before asset Y: true; in 2022 the depreciation charge is lower for asset X than for asset Y: false
  • Dasset X will be fully depreciated before asset Y: true; in 2022 the depreciation charge is lower for asset X than for asset Y: true

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