Fixed assets are ordinarily presented on the balance sheet:
A) at its current market value.
B) at its replacement cost.
C) at its cost less accumulated depreciation.
D) under intangible assets.

Question

Quizplus · Accepted Answer

Fixed assets are presented on the balance sheet at their cost less accumulated depreciation. This is because fixed assets represent long-term investments made by the company and are expected to provide economic benefits over multiple accounting periods. The cost less accumulated depreciation method reflects the decrease in value of the asset over its useful life and provides a more accurate representation of the asset's true value. Presenting fixed assets at their current market value or replacement cost would overstate their value and may not reflect their actual worth to the company. Intangible assets are a separate category of assets and are presented separately on the balance sheet.

Fixed Assets Are Ordinarily Presented on the Balance Sheet