Question

Those fixed assets which lose their value because of use are called _____________.

• A. Fictitious assets
• B. Intangible assets
• C. Floating assets
• D. Wasting assets

Answer 1

The correct option is D Wasting assets

Fixed assets are further classified in to Wasting Assets and Non Wasting Assets.

Wasting Assets are those which waste away or lose their value through effluxion of time (leasehold land), through wear & tear (machinery) or through being worked (mines).

Non Wasting Assets are those do not normally lose their value by effluxion of

time (freehold land)