Question

Depreciation is generated from which of the following Accounting information system?

• A. Tax accounting sub-system
• B. Expense accounting sub-system
• C. Final accounts sub-system
• D. Fixed assets accounting sub-system

Hint:

Depreciation is calculated based on the cost and useful life of fixed assets, and is managed through the Fixed Assets Accounting Sub-System.

Answer 1

The Correct Option is D

Depreciation is directly related to fixed assets, and thus is generated from the fixed assets accounting sub-system, which tracks the asset’s acquisition, depreciation, and disposal.