Depreciation is associated with which asset category?

• A. Current assets
• B. Cash and cash equivalents
• C. Fixed assets
• D. Intangible assets (amortization)

Answer: (C)

Depreciation refers to allocating the cost of tangible long‑lived assets over their useful life. It applies to fixed assets such as buildings, machinery, and equipment that wear down or become obsolete with use. Cash and cash equivalents are short-term assets and aren’t depreciated; intangible assets are amortized, not depreciated. Therefore, the asset category most associated with depreciation is fixed assets.