Bookkeeping Certification — Practice Exam
Depreciation: practice questions
Our Bookkeeping bank has 7 questions on this topic. Here are 3 of them with answers; the full mock exam draws from every topic, like the real one.
Question 1
Which asset is not depreciated?
- Buildings
- Vehicles
- Equipment
- Land
Show the answer
D. Land — Land is considered to have an unlimited useful life.
Question 2
What is the journal entry to record depreciation?
- Debit Accumulated Depreciation; credit Equipment for the year's depreciation
- Debit Cash; credit Depreciation Expense
- Debit Equipment; credit Cash
- Debit Depreciation Expense; credit Accumulated Depreciation
Show the answer
D. Debit Depreciation Expense; credit Accumulated Depreciation — The asset account itself isn't credited directly.
Question 3
What is book value?
- The asset's cost minus accumulated depreciation
- The asset's market value
- The asset's original cost, including shipping and installation
- The salvage value
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A. The asset's cost minus accumulated depreciation — Book value is also called carrying value.