Home › CBSE Class 11 (Commerce) › Accountancy › Depreciation, Provisions and Reserves › Which asset type is depreciated under the deprec…
Which asset type is depreciated under the depreciation rules, in line with AS-6?
AStock kept for sale
BMachines used in business
CDebtors of the year
DCash held in bank
Answer & Solution
Correct answer: B. Machines used in business
Depreciable assets are those held for use over more than one period, not for sale in the ordinary course.
Related questions
Depreciation of a machine is debited to which statement?Which feature must a depreciable asset have?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?Profit on sale of a fixed asset is treated as what kind of profit?