DP Business Management Questionbank

Calculate the value (also known as net book value) of new machinery at 31 December 2017 using the straight line depreciation method (show all your working).

Calculate the value (also known as net book value) of new machinery at 31 December 2017 using the reducing/declining balance method, applying the industry depreciation rate of 40% per annum (show all your working).

Explain one advantage for GD of using the straight line balance depreciation method.

Describe one disadvantage of using the reducing/declining balance method of depreciation.

Using the reducing/declining balance method of depreciation, calculate PB Ltd’s annual depreciation of fixed assets for 2019 and 2020. Use 5 % as the depreciation rate (show all your working).

Calculate the net profit margins for DH for 2016 and 2017.

Calculate net current assets (working capital) for DH for 2016 and 2017.

Using the straight line method, calculate the annual depreciation for each laptop (show all your working).

Comment on the usefulness to PU of the results of your calculation in part (i).