Fixed assets are ordinarily presented in 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 typically presented in the balance sheet at cost less accumulated depreciation, which represents the remaining value of the asset after accounting for its wear and tear or obsolescence over time. This is known as the asset's carrying value. Presenting fixed assets at current market value or replacement cost would require frequent revaluations and adjustments, which can be time-consuming and costly. Intangible assets may be presented separately from tangible fixed assets, but both are typically valued based on cost less accumulated depreciation.

Fixed Assets Are Ordinarily Presented in the Balance Sheet