Question

Depreciable assets are assets which ___________.

• A. Are expected to be used for more than one accounting period
• B. Do not have a limited useful life
• C. Are held by the organisation for sale in regular course of business
• D. All of the above

Answer 1

The correct option is A Are expected to be used for more than one accounting period

solution:

Depreciation means decline in book value of asset. The assets generally have useful life for more than one accounting period.Assets have limited useful life.Assets are used to earn income by way of rent, for production of goods or services or for office use.

If product is used for purpose of resale then it can not be called as asset as it is for trade.

hence the correct opt: A