Question 17 of 33
Q.Depreciation is to be calculated from the date when :
(a) Asset is received at business premises
(b) Asset is put to use
(c) Invoice of assets is received
(d) Purchase order of Asset is made
Puducherry TnboardTamil Nadu HSC First Year (DGE) Commerce Board 2023MCQ· 1mImportance★★★★★
52% · 17/33 Questions
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Start your 14-day free trial to unlock the full solution →Depreciation is calculated from the date the asset is put to use, so the answer is (b).
Depreciation represents the loss in value of a fixed asset due to wear and tear, use, and passage of time as it helps earn revenue. The matching concept requires this cost to be spread over the period during which the asset actually contributes to the business.
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