Question

When depreciation is recorded by charging to Asset Account, the asset appears___________.

• A. At original Cost
• B. At original cost / less depreciation
• C. At market value
• D. At realizable value

Answer 1

Answer: (B)

At original cost / less depreciation

Fixed assets are the assets that are used in long run by the business. Fixed assets are shown in the Balance sheet at cost less depreciation. Depreciation is apportioning the cost of the asset by writing it off over the life of the asset. It is also used to record the decline in the value of asset due to passage of time, wear and tear etc.