Asked by
Christella Audrey
on Oct 28, 2024
Verified
Which one of the following statements is not true regarding depreciation?
A) It is a systematic, rational method of allocating the cost of an asset over its useful life.
B) It attempts to match the costs of acquiring an asset to the benefits to be derived from the asset.
C) It does not attempt to measure the value of the asset.
D) It provides funds for the replacement of the asset through tax savings over the asset's life.
Systematic Method
An organized, consistent approach to solving problems or achieving objectives that follows specific guidelines or principles.
Tax Savings
The reduction in tax liability achieved through various deductions, credits, or allowances.
Acquiring Asset
This term involves obtaining control of another company's asset through purchase or merger, enhancing the buyer's resources and capabilities.
- Familiarize oneself with the concept of depreciation, its intended purposes, and its role in affecting financial records.
Verified Answer
CI
Learning Objectives
- Familiarize oneself with the concept of depreciation, its intended purposes, and its role in affecting financial records.