GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Are held by an enterprise for use in the production or supply of goods and services, for rental to others, or for administrative purposes and not for the purpose of sale in the ordinary course of business
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Are expected to be used during more than one accounting period
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Have a limited useful life
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All of the above
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Detailed explanation-1: -Depreciable asset is generally an asset used for generating income or profit and has a useful life of more than a year and gradually reduces in value over time. It is a type of physical asset that is capable of depreciation treatment under tax laws in accordance with the Internal Revenue Service rules.
Detailed explanation-2: -Land is not depreciated, since it has an unlimited useful life. If land has a limited useful life, as is the case with a quarry, then it is acceptable to depreciate it over its useful life.
Detailed explanation-3: -Tangible assets, being building, machinery, plant or furniture, Intangible assets, being know how, patents, copyrights, trade-marks, licenses, franchises or any other business or commercial rights of similar nature.
Detailed explanation-4: -What assets can be depreciated? Some examples of the most common types of depreciable assets include vehicles; buildings; office equipment or furniture; computers and other electronics; machinery and equipment; and certain intangible items, such as patents, copyrights, and computer software.