wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

The quality of fixed assets is said to have increased when expenditure results in :
1. Increase in probable useful life of the fixed asset
2. Increase in the capacity of the fixed asset
3. Increase in the efficiency of the fixed asset
4. Operating economy
5. Increase in the quantity of output beyond that originally anticipated.

A
1,2 and 3
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
2,3 and 4
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
1,2,3 and 4
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
1,2,3,4 and 5
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
Open in App
Solution

The correct option is D 1,2,3,4 and 5
If the quality of a fixed asset increases it means that the economic benefits to be derived from that asset also increases.Any expenditure on fixed asset which leads to an increase in its useful life, capacity, efficiency, operating economy or output mean that the quality of asset has improved as compared to its past performance, which is a good sign.
Note: Such expenditures are usually capitalized.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
MATHEMATICS
Watch in App
Join BYJU'S Learning Program
CrossIcon