1) If the declining balance method depreciation rate used on an asset is 20%, what is the cost of the asset if the net book value at the end of year 1 is 9,600? A) 12,000 B) 15,000 C) 14,000 2) What is another name for the declining balance method? A) Activity method B) Reducing balance method C) Residual value method 3) Using the declining balance method the depreciation expense each year is? A) A reducing amount B) A fixed amount C) An increasing amount 4) If an asset has a cost of 14,000 and a net book value at the end of year 1 of 11,900, what is the declining balance method depreciation rate applied? A)15% B) 25% C) 20% 5) If an asset costs 20,000 and is depreciated using the declining balance depreciation method at a rate of 33%, what is the depreciation expense for year 5? A) 2,700 B) 1,985 C) 1,330 6. The type of account with a normal credit balance is? a. An asset b. An expense c. Drawings d. Revenue 7. Which one of the following account would usually have a debit balance? a. Accounts Payable b. Cash c. Owner's Equity d. Bank Loan 8. A Trial balance which shows equal totals for both debit and credit columns? a. Shows that there must be more than one error within the bookkeeping system b. Shows that the bookkeeping system is free of errors c. Shows that the arithmetic is correct, but errors may still be present in the bookkeeping system d. Shows that there is only one error within the bookkeeping system 9. Why does a business prepare a Trial Balance? a. To calculate the profit and loss b. To check the cash and bank balance c. To check the arithmetical accuracy of the ledgers d. To show the financial position 10. Which of the following best describes a Trial balance? a. Shows all the entries in the books b. It is a list of total / balances of books c. Shows the financial position of a business d. It is a special account