Home › CBSE Class 11 (Commerce) › Accountancy › Depreciation, Provisions and Reserves › Depreciation in the books is based on which valu…
Depreciation in the books is based on which value of the asset?
ACurrent market price
BExpected resale price
CInsured sum assured
DOriginal cost basis
Answer & Solution
Correct answer: D. Original cost basis
Accounting depreciation tracks the cost of the asset consumed, not what the market would pay for it today.
Related questions
Depreciation of a machine is debited to which statement?Which feature must a depreciable asset have?Which asset type is depreciated under the depreciation rules, in line with AS-6?A reserve may be set up to meet which future need?Making an excessive provision for doubtful debts may result in what?Which of these can build a secret reserve?Charging higher depreciation than required creates which kind of reserve?A secret reserve differs from an ordinary reserve because it does what?