Adjustment and Depreciation

$500 gain

$1500 loss

$500 loss

$1000 gain

Wear and tear of assets

Depletion

Technical obsolescence

Assets may increase in value

Straight line method

Reducing balance method

Number of units produced methods

Machine hours method

Assets and expenses

Assets and income

Liabilities and expenses

Liabilities and assets

Unemployment is likely to be low

Prices are likely to increase

Growth is negative

Growth is slow

Cost price

Market price

Scrap value

None of these

3000

1000

2000

4000

Debited on machinery A/c

Credited to machinery A/c

Credited to profit and loss A/c

None of these

Increase every year

Decreases every year

Remains constant every year

None of these

Discounts allowed mistaken for discounts received when entered

Payment of insurance for £36 entered in both accounts as £63

Motor van purchased debited to motor expenses by mistake

Both B and C