Which Statement Is FALSE

question 150

Multiple Choice

Which statement is FALSE?

• A)Depreciation is caused by the physical wear and tear of a plant asset.
• B)Depreciation is caused by obsolescence of a plant asset.
• C)Depreciation is not based on changes in the market value of a plant asset.
• D)Accumulated depreciation is a cash fund to be used to replace a plant asset when it wears out.

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Definitions:

Ratio

A numerical correlation that displays how frequently the first number encompasses the second, indicating the magnitude of one number in relation to another.

Ratio

A connection between two figures that shows how often the first figure includes the second one.

Ratio

A quantitative relationship between two numbers showing how many times the first number contains the second or is contained by it.

Ratio

A quantitative relationship between two numbers indicating how many times the first number contains the second.