Question

Freehold Land & Building is classified as _________.

• A. revenue
• B. non-depreciable asset
• C. fixed assets
• D. fictitious asset

Answer 1

Answer: (C)

fixed assets

Business assets are classified in two parts i.e fixed assets and current assets. To operate any business, there are certain fixed assets which need to be installed like furniture, office building and plant & machinery etc. Stocks , cash on hand, debtors are considered as current assets. Free hold land & Building is considered as fixed assets.