Which of the following statements regarding depreciation is true?
A) All property, plant and equipment assets must be depreciated.
B) Recording deprecation on plant assets affects the income statement only.
C) In calculating depreciation expense both the cost of the asset and its residual value are estimates.
D) Depreciable amount is the cost of the asset less its residual value.

Question

Quizplus · Accepted Answer

Land is not depreciated as its useful life is not limited, depreciation also affects the statement of financial position and the cost of an asset is not an estimate.

Which of the Following Statements Regarding Depreciation Is True