Question

Assets having limited working life are termed as ___________.

• A. Non cash assets
• B. Depreciable assets
• C. Fixed assets
• D. Economic resources

Answer 1

Answer: (B)

Depreciable assets

Fixed asset are depreciated year on year basis due to its usage, normal wear & tear and obsolescence.

Every asset is having its useful life and depreciation is charged against the useful life. All such assets are termed as depreciable asset.

Hence depreciation has to be charged every year by debiting the same to profit & loss account by reducing the value of asset.