Look at your surroundings and identify at least five depreciable assets in your home, school, hospital, printing press and in a bakery.
Depreciable assets are tangible fixed assets such as machines, plants, furnitures, buildings, computers, trucks, vans, and equipments. These assets are used in the business for more than one year and are subject to wear and tear and the passage of time.
Identifying these assets in different surroundings based on the provided examples:
- Home: Furniture and Computers.
- School: Buildings and Furniture.
- Hospital: Equipments and Buildings.
- Printing Press: Machines and Equipments.
- Bakery: Plants and Machines.
These assets are not held for resale but for use in operations, and their cost is written off over their useful life.
Explanation
The textbook context explicitly lists examples of depreciable assets including 'machines, plants, furnitures, buildings, computers, trucks, vans, equipments'. The answer maps these specific examples to the locations requested (Home, School, Hospital, Printing Press, Bakery) to formulate a relevant response suitable for a 2-mark question.