State whether the following statement is True or False with reasons: Depreciation is charged on Current Assets only. - Book Keeping and Accountancy

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MCQ
True or False

State whether the following statement is True or False with reasons:

Depreciation is charged on Current Assets only.

Options

  • True

  • False

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Solution

This statement is False.
Depreciation is charged on fixed assets only because it is necessary to apportion the cost over a number of years during the useful life of an asset and there is no question of useful life for current assets.
Concept: Methods of Depreciation
  Is there an error in this question or solution?
Chapter 7: Depreciation - Exercises [Page 243]

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