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Question 89

Depreciation is charged on fixed assets to:

  1. AIncrease profit
  2. BReduce liabilities
  3. CAllocate the cost of the asset over its useful life
  4. DIncrease the asset value
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Correct answer: (C) Allocate the cost of the asset over its useful life

Explanation

Depreciation spreads (allocates) the cost of a fixed asset over its useful life, matching the expense to the periods that benefit from the asset.

From DSSSB TGT Computer Science Practice Set 3

This is question 89 of DSSSB TGT Computer Science Practice Set 3. See all questions of this paper with answers, or attempt the paper as a timed online test to get your score and all-India rank.