Question

Depreciation applies to ?
a) Fixed assets
b) Intangible assets
c) current assets

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Answer 1

Answer:

intangible assests I think

Answer 2

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Depreciation applies to fixed assets.

Depreciation means decline in the value of fixed assets due to use, passage of time or obsolence.

Causes of depreciation are

1. Wear and tear due to use
2. obsolence
3. passage of time
4. depletion
5. Amortization.

Methods of calculating depreciation are

1. straight line method or fixed installment method.
2. Written down value method or reducing balance method.