A Non-Current Asset Was Purchased for £21,000 on 1 January

question 1

Multiple Choice

A non-current asset was purchased for £21,000 on 1 January 2020. If it is depreciated using the reducing-balance basis at the rate of 40% per annum, the net book value of the asset at 31 December 2021 will be:

• A) £4,200.
• B) £7,560.
• C) £5,040.
• D) £12,600.

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Definitions:

Rational Employers

Employers who make hiring and firing decisions based on the optimization of productivity and cost-effectiveness.

Margin

The difference between the selling price of a product and the cost of producing it, often expressed as a percentage of the selling price.

Labor Supply Curve

A graphical representation showing the relationship between the wage rate and the quantity of labor that workers are willing to supply.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision.