New Click here to Enroll for SIDBI MSME Expert Classes by Experts

    Register

    Question

    At the balance sheet date, the balance on the

    Accumulated Provision for Depreciation Account is
    A Deducted from the asset in the Balance Sheet Correct Answer Incorrect Answer
    B Transferred to Profit and Loss Account Correct Answer Incorrect Answer
    C Transferred to the Asset Account Correct Answer Incorrect Answer
    D Transferred to Depreciation Account Correct Answer Incorrect Answer

    Solution

    At the balance sheet date, the balance on the Accumulated Provision for Depreciation Account is subtracted (deducted) from the corresponding asset in the Balance Sheet. This deduction reflects the accumulated depreciation on the asset, reducing its carrying amount to its net book value.

    Practice Next