passwella.
Menu

WAEC Financial Accounting 2009 Question 33

Question 33

Depreciation

In the balance sheet, the balance on the Provision for Depreciation Account is shown as

  1. A.addition to fixed assets
  2. B.deduction from fixed assets
  3. C.addition to capital
  4. D.deduction from current liabilities
Show the answer and explanation

Answer: B (deduction from fixed assets)

Explanation

Accumulated depreciation is deducted from the cost of the fixed asset to give its net book value.