Which of the following is not depreciated?
Correct answer: D. Land
- A. Building
- B. Office equipment
- C. Plant and Machinery
- D. Land
Explanation
Land normally has an indefinite useful life and is therefore not depreciated, unlike buildings, machinery, and office equipment. Its cost is generally retained until disposal.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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