Question

Which of the following is usually depreciated?

A.current assets

B.current liabilities

C.Long term liabilities

D. fixed liabilities

E. fixed assets

Answer 1

Correct answer- E

First of all, liabilities cannot be depreciated. So, reject B, C, and D.

Between A and E, select E because current assets (such as Cash) are held for a short period of time and cannot be depreciated.

Fixed assets such as equipment, machinery, tools, etc. lose their value throughout their life and hence are depreciated.