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Subjects · Leaving Cert Accounting

Leaving Cert Accounting: Depreciation

How often Depreciation comes up on the Accounting papers, every year it was asked, and questions to try.

HL Asked on 10 of the last 10 Higher Level papers, most recently in 2026. banker

OL Asked on 10 of the last 10 Ordinary Level papers, most recently in 2026. banker

Depreciation, Higher Level(6 marks)

Quick ones on Depreciation.

(a)Straight-line depreciation charges…
  1. A falling amount each year
  2. The same amount each year
  3. A rising amount each year
(b)The reducing balance rate is applied to the asset's…
  1. Residual value
  2. Original cost
  3. Net book value
(c)Machine cost €20,000; 10% straight line. Annual charge?
  1. €2,000
  2. €1,800
  3. €200
Show the answers

(a) The same amount each year

(b) Net book value

(c) €2,000

Your turn: Higher Level questions on Depreciation.

Higher Level

Asked on 10 of the last 10 Higher Level papers, most recently in 2026. banker

Every paper, year by year

YearWhere it came up
2026Q1
2025Q1, Q3
2024Q1, Q4
2023Q1
2022Q1, Q4
2021Q1, Q3
2019Q1, Q3
2018Q1, Q2
2017Q1, Q3
2016Q1

Links open the State Examinations Commission’s paper for that year.

More Depreciation questions

Depreciation, 2 marks

Asset bought on 1 July; year end 31 December; time basis. Months of depreciation in year 1?

  1. 12
  2. 0
  3. 6
Show the answer

6

July to December is 6 months, so the charge is 6/12 of a full year, e.g. €10,000 × 6/12 = €5,000.

Depreciation, 2 marks

Depreciation is best described as…

  1. Showing an asset at market value
  2. Spreading an asset's cost over its useful life
  3. Setting aside cash to replace an asset
Show the answer

Spreading an asset's cost over its useful life

It matches part of the cost to each year the asset is used; it doesn't set aside cash or show market value.

Ordinary Level

Asked on 10 of the last 10 Ordinary Level papers, most recently in 2026. banker

Every paper, year by year

YearWhere it came up
2026Q1
2025Q1
2024Q1
2023Q1, Q3
2022Q1
2021Q1, Q4
2019Q1, Q3
2018Q1
2017Q1, Q2
2016Q1

Links open the State Examinations Commission’s paper for that year.

More Depreciation questions

Depreciation, 2 marks

Straight-line depreciation is a fixed percentage of the asset's…

  1. Net book value
  2. Selling price
  3. Cost
Show the answer

Cost

Straight line uses cost every year, e.g. 10% of a €50,000 machine is €5,000 each year. Reducing balance uses net book value instead.

Depreciation, 3 marks

Machine cost €40,000; 10% reducing balance. Year 2 charge?

  1. €8,000
  2. €3,600
  3. €4,000
Show the answer

€3,600

Year 1: 10% × €40,000 = €4,000, leaving NBV €36,000. Year 2: 10% × €36,000 = €3,600.

Depreciation, 2 marks

In the balance sheet, fixed assets are shown at cost less…

  1. Accumulated depreciation
  2. This year's sales
  3. Residual value only
Show the answer

Accumulated depreciation

Balance sheet: cost − accumulated depreciation (all depreciation to date) = net book value.

Other Accounting topics

All of Leaving Cert Accounting