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1. When should you depreciate an asset?
Whenever a fixed asset is capitalized, it must be depreciated.
An asset is only depreciated if it was approved for depreciation by senior management during the annual budgeting process.
All current and fixed assets must be depreciated when acquired.
2. What is the book value of a fixed asset?
The original acquisition value minus any accumulated depreciation.
The accumulated depreciation of the fixed asset.
The current market value of a fixed asset.
3. What is required to determine a depreciation schedule for an asset?
The acquisition value, the useful life, the residual value, the asset type, the location of the supplier/manufacturer, and the ROI of the investment.
The acquisition value, the useful life, the residual value, and the asset type.
The acquisition value and the useful life of the asset.
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