Configure Fixed Assets MB-800 Practice Questions (Page 1)

Questions 1–5

1. 1foundation · easy

   Which of the following is a configuration that can be set on the Fixed Asset Setup page?

   • AFixed asset class codes
   • BDepreciation starting date for all assets
   • CDefault depreciation book
   • DDepreciation method for each asset
   Reveal Solution Discussion Select an answer first
2. 2application · medium

   A company acquires a fleet of delivery vehicles. The accounting manager wants each vehicle's depreciation to be calculated using the straight-line method over a 5-year useful life, but they also want to track a separate tax depreciation book that uses declining-balance for the same vehicles. The company has not yet configured fixed assets. What should you do first?

   • ACreate two fixed asset classes, one for each depreciation method, and assign each vehicle to the appropriate class.
   • BCreate one depreciation book with the straight-line method and manually calculate the declining-balance amounts outside the system.
   • CCreate two depreciation books, assign the straight-line method to one and declining-balance to the other, then assign both books to each vehicle.
   • DCreate a single depreciation book with declining-balance method and override the method for individual vehicles as needed.
   Reveal Solution Discussion Select an answer first
4. 3foundation · easy

   Which depreciation method calculates depreciation based on a fixed percentage of the asset's book value each period?

   • AUser-Defined
   • BSum-of-the-Years'-Digits
   • CDeclining-Balance
   • DStraight-Line
   Reveal Solution Discussion Select an answer first
5. 4application · medium

   A company classifies its fixed assets into classes such as 'Land', 'Buildings', and 'Equipment'. They now need to further distinguish 'Office Equipment' from 'Manufacturing Equipment' within the 'Equipment' class, and they want the subclass to be automatically assigned when creating a new asset. What should you configure?

   • ACreate two depreciation books and assign them to the 'Equipment' class.
   • BUse the 'Equipment' class and add a text field to the asset card for the subclass.
   • CCreate two new fixed asset classes: 'Office Equipment' and 'Manufacturing Equipment'.
   • DCreate two fixed asset subclasses under the 'Equipment' class and set the subclass as a default on the class.
   Reveal Solution Discussion Select an answer first
6. 5application · medium

   A company needs to report depreciation differently for tax purposes and for internal accounting. They want to use a different depreciation method and useful life for tax reporting while keeping the internal accounting book unchanged. What should you configure?

   • ACreate a second depreciation book for tax reporting and assign it to the relevant assets.
   • BCreate a new fixed asset class for tax assets and move the assets to that class.
   • CUse the 'Duplicate' function to create a copy of the asset for tax purposes.
   • DChange the depreciation method on the existing depreciation book.
   Reveal Solution Discussion Select an answer first