Question

Depreciation is provided on _________.

• A. Current assets
• B. Liquid assets
• C. Fictitious assets
• D. Fixed assets

Answer 1

The correct option is D Fixed assets

Fixed assets are those assets that provide long term benefits to the organization and are not meant to be sold in the course of business. Hence these are recorded in the balance sheet. A portion of the cost of these assets is charged to the profit & loss account every year which is termed as depreciation.