Which of the following statement is FALSE? True statements are: • Ext
A. Extraction of natural resources like mines, quarries etc. that reduces the availability of the quantity of the material or asset is termed as depletion.
B. Depreciation doesn’t provide fund for replacement.
C. Depreciation need not be charged if adequate maintenance expenditure is also incurred.
D. Depreciation is charged even if market value of an asset is higher than its book value.
Right Answer is: C
SOLUTION
True statements are:
• Extraction of natural resources like mines, quarries etc. that reduces the availability of the quantity of the material or asset is termed as depletion.
• Depreciation doesn’t provide fund for replacement.
• Depreciation is charged even if adequate maintenance expenditure is incurred.
• Depreciation is charged even if market value of an asset is higher than its book value.