Question

arrangement of depreciation is made on (1) fixed and tangible assets (2) fixed and intangible assets (3) fixed, tangible and intangible assets (4) none of these​

Answer 1

ANSWER :

❖ (1) Fixed and Tangible Assets

• ★ Arrangement of depreciation is made on Fixed and Tangible Assets.

• ★ Depreciation is not charged agains intangible assets.

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KNOW MORE :

❒ Depreciation :-

• ❍ In accounting, the term "Depreciation" can be defined as the process of allocating the net cost of fixed assets over its estimated useful life.

• ❍ Depreciation refers to the loss or decrease in the value of fixed assets due to their constant use and expiry of time.

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❒ Cause of Depreciation :-

• ➯ Constant use of an asset

• ➯ Expiry of time of an asset

• ➯ Expiry of legal rights

• ➯ Obsolescence

• ➯ Accident

• ➯ Depletion of an asset.

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❒ Methods of providing Depreciation :-

• ➯ Straight Line Method or Original Cost Method or Fixed Inst alment Method.

• ➯ Diminishing Balance Method or Written Down Value Method or Reducing Balance Method.

• ➯ Anñuity Method.

• ➯ Depeciation Fuñd Method.

• ➯ Insurance Policy Method.

• ➯ Revaluation Method.

• ➯ Depletion Method.

• ➯ Machine Hour Rate Method.