Lesson ProgressPhase 5 of 6
Phase 5Assessment
Assessment: When Does a Cost Become an Asset? — Capitalization, Useful Life, and Salvage Value
Short MCQ exit ticket on capitalization vocabulary, useful life, salvage value, and reasoning.
Phase 5: Exit Ticket
Capitalization & Depreciation Vocabulary Check
This short quiz checks your understanding of capitalization, useful life, salvage value, and accumulated depreciation. These are the concepts you will use in every depreciation lesson going forward.
What This Checks
You can explain when a cost becomes an asset vs. an expense
You can calculate depreciable base from cost and salvage value
You understand how accumulated depreciation builds over time
You can distinguish repairs from improvements
Exit Ticket: Capitalization & Depreciation
Answer all 5 questions. These assess the vocabulary and reasoning from today's lesson.
1. Which of the following best describes capitalization?
2. A company buys a $50,000 machine that will last 10 years and can be sold for $5,000 at the end. What is the depreciable base?
3. Why is routine maintenance on a delivery van expensed instead of capitalized?
4. What happens to accumulated depreciation over time?
5. An asset has a cost of $8,000, accumulated depreciation of $3,000, and a salvage value of $1,000. What is its current book value?
0 of 5 questions answered
What Comes Next
In the final phase, you will reflect on what you learned today and preview the straight-line depreciation method — the most common way businesses allocate depreciation expense over an asset's useful life.