Question : When the Balance Sheet has an item of Provision for Depreciation or Accumulated Depreciation for both years, it means that the fixed assets are shown in the Balance Sheet at their-------------.

Option 1: Written down value

Option 2: Original cost

Option 3: Both A and B

Option 4: None of the above


Team Careers360 15th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Original cost


Solution : Answer = original cost method

If the Balance Sheet has an item of Provision for Depreciation or Accumulated Depreciation, it means that fixed assets are shown in the Balance Sheet at their original cost. This approach, known as the original cost method, reflects the historical acquisition cost of the assets rather than their written-down value.
Hence, the correct option is 2.

Related Questions

CLAT Current Affairs with GK ...
Apply
Stay updated with current affairs & check your preparation with the CLAT General Knowledge Mock Tests Ebook
CLAT English Language Mock Tests
Apply
Free Ebook - CLAT 2025 English Language questions with detailed solutions
ICFAI Business School-IBSAT 2024
Apply
9 IBS Campuses | Scholarships Worth Rs 10 CR
CLAT Legal Reasoning Mock Tests
Apply
Free Ebook - CLAT 2025 legal reasoning questions with detailed solutions
GIBS Business School Bangalor...
Apply
100% Placements with 220+ Companies
Great Lakes PGPM & PGDM 2025
Apply
Admissions Open | Globally Recognized by AACSB (US) & AMBA (UK) | 17.3 LPA Avg. CTC for PGPM 2024
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books