Opening Balance in Fixed Assets Account

Steps:

• Identify the account type: Motor vehicles at cost is a non-current asset account tracking historical cost.
• Review the statement: It specifies the balance at the beginning of the year.
• Note the amount: $000 indicates a zero balance.
• Conclude implication: No prior vehicles, so opening balance is zero.

Why B is correct:

• B states the opening balance is zero, aligning with the $000 figure per accounting standards for asset cost accounts starting fresh.

Why the others are wrong:

• A assumes a positive balance, ignoring the zero notation.
• C implies depreciation impact, but this is cost account, not accumulated depreciation.
• D suggests credit balance, incorrect as asset accounts have debit balances.

Not enough information on exact choices, but B fits the zero balance description.

Final answer: B