Question

depreciation is provided on :- a) current assets. b) intangible assets c) fixed asset. d) fictitious assets correct answer plzzzzz!

Answer 1

depreciation is provided on fixed assets.
hope its correct and helps you out

Answer 2

Option c) Depreciation is provided on the fixed assets.

As the many business owns the fixed assets as they contribute the major part in day to day business operations.

As they are used throughout the year there comes some wear and tear in the condition of fixed assets and doesn't give much efficiency after the period of a time.

The calculation of such wear and tear is known as depreciation of the fixed assets as these expenses are non cash in nature and doesn't show any kind of real activity.

There are generally two methods of charging depreciation:

1. Diminishing value method.

2. Original cost method.