Question

Which of the following statements about depreciation is false? a. depreciation is the process of allocating...

Which of the following statements about depreciation is false?

a. depreciation is the process of allocating the cost of buildings and equipment over their productive lives using a systematic and rational method

b. Depreciation is an example of the matching principle in which a portion of an assets cost is allocated to an expense in the same period that revenues are generated by its use

c. Depreciation is a process of cost allocation, not a process of determining an asset's current market value or worth

d. Depreciation is the process of putting aside funds for the eventual replacement of the assets being depreciated

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Answer #2

answer : c) depreciation is the process of cost allocation not a process of determining an assets current market value or worth

explanation

option a) is correct - depreciation is the process of allocating the cost of building and equipment over their productive lives using a systematic and rational method

option b) is correct because it is an example of matching principle in which a portion of asset cost is allocated to an expense to the same period that revenues are generated by its use

option c) is false because depreciation is used for determining the current market value or the book value of the asset.

option d) is correct -it is the process of putting aside funds for the eventual replacement of the assets being depreciated

answered by: anonymous
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