Class 11 Accountancy - Chapter Depreciation, Provisions and Reserves NCERT Solutions | State whether the following statements a

Welcome to the NCERT Solutions for Class 11th Accountancy - Chapter Depreciation, Provisions and Reserves. This page offers a step-by-step solution to the specific question from Excercise ".$ex_no." , Question 1: state whether the following statements are true or....
Question 1

State whether the following statements are true or false:

  1. Depreciation is a non-cash expense.
  2. Depreciation is also charged on current assets.
  3. Depreciation is decline in the market value of tangible fixed assets.
  4. The main cause of depreciation is wear and tear caused by its usage.
  5. Depreciation must be charged so as to ascertain true profit or loss of the business.
  6. Depletion term is used in case of intangible assets.
  7. Depreciation provides fund for replacement.
  8. When market value of an asset is higher than book value, depreciation is not charged.
  9. Depreciation is charged to reduce the value of asset to its market value.
  10. If adequate maintenance expenditure is incurred, depreciation need not be charged.

Answer

1. True
2. False
3. False
4. True
5. True
6. False
7. True
8. False
9. False
10. False

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