A. True or False: ________ 1. Depreciation is the decline in the market value of tangible fixed assets. ________ 2. Depreciation must be charged for ascertaining true profit or loss of the business ________ 3. When the market value of an asset is higher than the book value, then depreciation is not charged.
A. True or False: ________ 1. Depreciation is the decline in the market value of tangible fixed assets. ________ 2. Depreciation must be charged for ascertaining true profit or loss of the business ________ 3. When the market value of an asset is higher than the book value, then depreciation is not charged.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter5: Adjusting Entries And The Work Sheet
Section: Chapter Questions
Problem 5TF: LO1 The purpose of depreciation is to record the assets market value in the accounting records.
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A. True or False:
________ 1. Depreciation is the decline in the market value of tangible fixed assets.
________ 2. Depreciation must be charged for ascertaining true profit or loss of the business
________ 3. When the market value of an asset is higher than the book value, then depreciation is not charged.
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