WAEC Accounting Past Questions & Answers - Page 118

A machine cost N12,000 and has a useful life of 4 years and an expected disposal value of N400. Using the straight line method, the annual depreciation is

Which of the following may cause depreciation? 
i. wear and tear 
ii. obsolescence and passage of time 
iii. fluctuation
 

Which of the following is not true of capital expenditure? 
i. assets acquired for the purpose of earning income 
ii. extension of office building 
iii. it is incurred and its full benefits consumed in one period of account
 

Pending the location of error, the difference disclosed in the trial balance is normally posted to

Trade discount is