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.

विकल्प

• True

• False

Answer 1

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.