Vidyalelo
Commerce · Q178

Accounting

Graduate and Post Graduate · Commerce · question 178

Q178

Depreciable amount + Residual value of a fixed asset = ?

A.
Depreciation expenses
B.
Accumulated depreciation
C.
Cost of the fixed asset
Answer
D.
Future economic benefits of a fixed asset

Answer: Option C

Solution

Answer: Option C
Solution:
Depreciable amount + Residual value of a fixed asset = Cost of the fixed asset. Fixed assets are depreciated only to the extent of their depreciable amount, which equals cost minus the salvage value.