Advertisements
Advertisements
Question
State whether the following statement is True or False with reasons:
It is not necessary to depreciate an asset if it is not in use.
Options
True
False
MCQ
True or False
Solution
This statement is False.
Depreciation is charged as an element of cost. If an asset is not in use, even though its value reduces due to the passage of time. Therefore, we can say that it is compulsory to depreciate an asset if it is not in use.
shaalaa.com
Factors of Depreciation
Is there an error in this question or solution?
