PRC-1 · Chapter 6 · Question 94 of 100
Which of the following is TRUE regarding 'Land' as an asset in financial accounting?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) It normally has an unlimited useful life and is therefore not depreciated.
Explanation
With a few exceptions (like quarries or landfill sites), land is assumed to have an unlimited useful life and thus does not undergo systematic depreciation.
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