Fixed assets and depreciation basics

Skills you'll practise

• Decide whether a cost is capitalized or expensed using a stated policy threshold and the nature of the cost
• Calculate straight-line and reducing-balance depreciation, accumulated depreciation and net book value
• Calculate the gain or loss on disposal of an asset
• Check an asset register against calculations and a physical count

Course outline

1. 1.Fixed assets and depreciation basicsVideo · 2 min
2. 2.Capital or expense?Lesson · 14 min
3. 3.Depreciation methodsLesson · 15 min
4. 4.Disposals, the register and checksLesson · 13 min
5. 5.Fixed assets and depreciation basics: knowledge checkKnowledge check · 19 questions
6. 6.Fixed assets and depreciation basics: practical exerciseKnowledge check · 1 question
7. 7.Final exam8 questions · passing it completes the course, so people who already know the material can test out

Sources it draws on

The lessons and questions are written from these references, so learners can go back to the original.

• General fixed-asset accounting practice (capitalization, straight-line and reducing-balance depreciation, disposals, asset registers)