Which of the following is not depreciated?
Correct answer: B. Land
- A. Building
- B. Land
- C. Plant and Machinery
- D. Office equipment
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.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
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.
Practise Accounting Principles
351 free Accounting Principles MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Accounting Principles questions
____________is also known as Appraisal system of depreciation?
The entry for creating a Provision for bad debts is_____________?
When a person purchasing goods on credit he becomes a_________in the books of the seller?
Which of the following is an external cause of depreciation?
Depreciation is calculated on the____________?
Which of the following statements is correct about Depreciation?