Which of the Following Facts About Depreciation Is NOT True

question 5

Multiple Choice

Which of the following facts about depreciation is NOT true?

• A) The profit for the year is reduced as a result of the depreciation charge.
• B) Depreciation recognizes the fact that non-current assets have a finite useful life.
• C) The accumulated (total) depreciation provided on non-current assets is deducted from their cost to arrive at the net book value of the asset.
• D) The depreciation charge for the year is the amount paid out for the asset in that year.

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