Q2946
Which one of the following statements is correct?
A.
Depreciation is not the process of valuation of asset-it is a process of allocation of cost of asset to the period of its economic life
AnswerB.
If the cost of machinery is more than the book value, then depreciation need not be provided
C.
When the plant and machinery and maintained in good condition, through repairs and renewals, depreciation need not be provided
D.
In the absence of any legal provisions, if the auditor finds that provision made for depreciation is inadequate, then he is not required to refer to it in his report
Answer: Option A
Solution
Answer: Option A
No explanation is given for this question Let's Discuss on Board