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Commerce · Q306

Accounting

Graduate and Post Graduate · Commerce · question 306

Q306

Which of the following is/are fixed asset(s)?

A.
Closing inventory
B.
Fixed deposit in a bank
C.
Patents
Answer
D.
Prepaid expenses

Answer: Option C

Solution

Answer: Option C
Solution:
Patents are fixed assets. The accounting process for patents is similar to other fixed assets. Companies allocate or amortize the costs over the life of the patent.