Which type of asset is generally not depreciated because it normally has an unlimited useful life?
Correct answer: A. Freehold land
- A. Freehold land
- B. Office equipment
- C. Leasehold building
- D. Delivery vehicle
Explanation
Freehold land generally has an unlimited useful life and is therefore not depreciated. Buildings and equipment have finite useful lives and are depreciated over those lives.
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About Depreciation and Non-Current Assets
Non-current assets are long-term resources recorded at cost and reduced by accumulated depreciation to show their carrying amount. Coverage includes straight-line and reducing-balance methods, residual value, useful life, depreciation adjustments, capital and revenue expenditure, and the profit or loss arising when an asset is disposed of.
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33 free Depreciation and Non-Current Assets MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
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