Which of the following is not true regarding depreciation? Oa. Depreciation allocates the cost of a fixed asset over its estimated life. O b. Depreciation expense reflects the decrease in market value each year. O c. Depreciation expense does not measure changes in market value. O d. Depreciation is an allocation not a valuation method.
Which of the following is not true regarding depreciation? Oa. Depreciation allocates the cost of a fixed asset over its estimated life. O b. Depreciation expense reflects the decrease in market value each year. O c. Depreciation expense does not measure changes in market value. O d. Depreciation is an allocation not a valuation method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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please explain why the option is correct and remaining incorrect in detail describe each and every option
Transcribed Image Text:Which of the following is not true regarding depreciation?
O a. Depreciation allocates the cost of a fixed asset over its estimated life.
O b. Depreciation expense reflects the decrease in market value each year.
O c. Depreciation expense does not measure changes in market value.
O d. Depreciation is an allocation not a valuation method.
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