AS A BASIS FOR ASSESSING FUTURE USAGE, FIXED ASSETS ARE SHOWN AT

• A. selling price
• B. cost price ✓
• C. cost plus residual value
• D. net book value

Fixed assets are typically shown on a company’s balance sheet at their original cost price, which is the amount paid to acquire or construct the asset. This cost includes all expenditures necessary to get the asset ready for its intended use, such as purchase price, delivery costs, installation fees, and any other directly attributable costs. The cost of fixed assets is not adjusted to reflect changes in market value or inflation unless there is a significant impairment that reduces the asset’s value below its carrying amount. Therefore, fixed assets are generally recorded on the balance sheet at their historical cost rather than their current selling price.

Fixed assets are shown on the balance sheet at their cost price, which represents the original amount paid to acquire or construct the asset.