EPFO 2017 PYQ with Answer — Depreciation of fixed assets is an example of

2017 · Q59

Depreciation of fixed assets is an example of

General Accounting Principles, Auditing and InsuranceRecording transactions

Adeferred revenue expenditure
Bcapital expenditure
Ccapital gain
Drevenue expenditure/expense

Explanation

Depreciation is the periodic allocation of a fixed asset's cost to the periods benefiting from its use, charged as an expense to the Profit and Loss Account each year. It is therefore a revenue expenditure/expense (D), not deferred revenue expenditure, capital expenditure, or a capital gain.