CameraIcon

SearchIcon

MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Cash Flow from Investing Activities

Land is not a...

Question

Land is not a depreciable asset because __________.

A

its value always increases

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

there in no maintenance cost of land

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

life of the land is unlimited

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

D

land cannot depreciate

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B life of the land is unlimited
Land is not depreciated because land is assumed to have an unlimited useful life. Other long-lived assets such as land improvements, building, furnishing, equipment, etc. have limited useful lives. Therefore, the costs of those assets must be allocated to those limited accounting periods.

Suggest Corrections

thumbs-up

0

Similar questions

Q. For a machine that needs no maintenance or very little maintenance that also in the end year of asset, the depreciation method that suits best is ________.

Q. Which method of depreciation is effective if repairs and maintenance cost of an asset increases as it grows old _________________.

Q. Land does not depreciate.

Q. " In case of a long term asset, repair and maintenance expenses are expected to rise in later years than in earlier year".

Which method, is suitable for charging depreciation if the management does not want to increase burden on profits and loss account of depreciation and repair.

Q. Tick the correct match.

$1$ . Current Asset	$1$ . Depreciation
$2$ . Nominal A/c	$2$ . Land
$3$ . Non-Depreciable Asset	$3$ . Insurance A/c
$4$ . Non-Cash Expense	$4$ . Prepaid Rent A/c

Select the correct answer from the options given.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Diving Deeper

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Cash Flow from Investing Activities

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon