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Q.Which of the following is correct? Depreciable assets are those assets which –
  • a)
    Are expected to be used for more than 1 accounting period
  • b)
    Have a limited useful life
  • c)
    Are held for use in production of goods and services ( i.e. for the purpose of re-sale )
  • d)
    None of the above
Correct answer is option 'A,B'. Can you explain this answer?
Verified Answer
Choose the correct answer(more than one)Q.Which of the following is co...
Explanation:
The correct answers are A and B. Depreciable assets are those assets which:

- A: Are expected to be used for more than 1 accounting period
- B: Have a limited useful life
Here is a detailed explanation for each option:

- A: Are expected to be used for more than 1 accounting period: Depreciable assets are assets that are expected to be used over multiple accounting periods. They are not consumed or sold immediately after acquisition but are expected to provide benefits to the company over a certain period of time.
- B: Have a limited useful life: Depreciable assets have a limited useful life, meaning that they deteriorate, become obsolete, or wear out over time. This limited useful life is the reason for their depreciation, as their value decreases over time due to usage and wear and tear.
- C: Are held for use in the production of goods and services (i.e. for the purpose of re-sale): This option is not correct. Assets held for use in the production of goods and services are referred to as productive assets, but not necessarily depreciable assets. Productive assets may include both depreciable and non-depreciable assets.
- D: None of the above: This option is incorrect because options A and B are correct. Depreciable assets are those that are expected to be used for more than one accounting period and have a limited useful life.
In summary, the correct answers are A and B. Depreciable assets are expected to be used for more than one accounting period and have a limited useful life.
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Choose the correct answer(more than one)Q.Which of the following is correct? Depreciable assets are those assets which –a)Are expected to be used for more than 1 accounting periodb)Have a limited useful lifec)Are held for use in production of goods and services ( i.e. for the purpose of re-sale )d)None of the aboveCorrect answer is option 'A,B'. Can you explain this answer?
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