Fixed assets are ordinarily presented in 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 in the balance sheet at their historical cost less accumulated depreciation. This is the generally accepted accounting practice and provides a more conservative approach to valuation as it reflects the cost of the asset less the portion that has already been used up through depreciation. It is not presented at current market value or replacement cost, and fixed assets are a separate category from intangible assets.

Fixed Assets Are Ordinarily Presented in the Balance Sheet