Which of the Following Statement Regarding Depreciation Is False

question 32

Multiple Choice

Which of the following statement regarding depreciation is false?

• A) The concept of depreciation is inconsistent with the going concern assumption.
• B) Recognizing depreciation on an asset does not result in an accumulation of cash for replacement of the asset.
• C) The three factors affecting the computation of depreciation include cost, useful life, and residual value.
• D) Accumulated depreciation is reported on the statement of financial position as a deduction from plant assets.

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Definitions:

Operational Plans

Strategic blueprints that outline detailed actions and resources required to accomplish short-term objectives aligned with an organization's goals.

Time Management

The process of planning and controlling how much time to spend on specific activities, aiming to increase efficiency or productivity.

Operational Plan

A detailed plan outlining the tactics an organization will use to achieve the targets and objectives set in its strategic plan.

Standing Plans

Pre-established procedures and guidelines designed to be implemented repeatedly in situations that occur frequently within an organization.