301
Question
Write the word/term/pharse which can substitute each of the following statement :
Type of asset on which depreciation is provided
Type of asset on which depreciation is provided
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Solution
[[S]]
Type of asset on which depreciation is provided- Fixed Asset
Explanation:
Depreciation is provided on fixed assets. In every business, there are some assets of fixed nature that are used continuously in the daily business operations. Therefore, with the passage of time and their continuous use in business, their value may decrease due to normal wear and tear. After the expiry of the useful life span, assets lose their usefulness. Hence, the fall in the value of the assets due to constant use and wear and tear is termed as depreciation and is provided on fixed assets.
[[S]]
Type of asset on which depreciation is provided- Fixed Asset
Explanation:
Depreciation is provided on fixed assets. In every business, there are some assets of fixed nature that are used continuously in the daily business operations. Therefore, with the passage of time and their continuous use in business, their value may decrease due to normal wear and tear. After the expiry of the useful life span, assets lose their usefulness. Hence, the fall in the value of the assets due to constant use and wear and tear is termed as depreciation and is provided on fixed assets.
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