Fixed assets are ordinarily presented on the balance sheet
A) at current market values
B) at replacement costs
C) at cost less accumulated depreciation
D) in a separate section along with intangible assets

Question

Quizplus · Accepted Answer

Fixed assets are presented on the balance sheet at cost less accumulated depreciation, which represents the historical cost of acquiring and improving the asset, adjusted for the amount of wear and tear or obsolescence that it has experienced over time. This method of presentation is consistent with the Generally Accepted Accounting Principles (GAAP) and provides users of the financial statements with a better understanding of the company's investment in its fixed assets.

Fixed Assets Are Ordinarily Presented on the Balance Sheet