Question

Depreciation is always charged on ______ Assets.

• A. Current
• B. Fixed
• C. Fictitious
• D. Intangible

Answer 1

The correct option is B Fixed

Depreciation means fall in the value of fixed asset because of usage or with efflux of time or due to obsolescence or accident. Depreciation is a permanent, continuing and gradual fall in the book value of a fixed asset.

It is important to note that depreciation is charged on all fixed assets except land. The reason is that unlike other fixed assets like machinery and furniture, land has infinite economic life.