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ACCA Knowledge Level Property, Plant and Equipment — practice questions

Explore 1 free Property, Plant and Equipment questions in ACCA Knowledge Level Financial Accounting. Open each question or exercise to read its content, reference answers and available explanation.

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Property, Plant and Equipment questions and exercises with answers

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Under the cost principle, which asset within property, plant and equipment is NOT depreciated?Read the answer and worked solution →

Worked practice questions

Under the cost principle, which asset within property, plant and equipment is NOT depreciated?

  1. Land
  2. Equipment
  3. Buildings
  4. Vehicles
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Correct answer: A. Land

1. Depreciation spreads an asset's cost over its useful life as it is "used up". 2. Land is treated as permanent property that is not used up, so it is never depreciated. 3. Equipment, buildings and vehicles all have finite useful lives and are depreciated. 4. Therefore the correct answer is Land. _Source: Jonick, Principles of Financial Accounting (CC BY-SA 4.0), §4.5 "Fixed and Intangible Assets", p.149_

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More Financial Accounting topics

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