Question

5. Depreciation reserve fund is
needed:
O a) To keep inventory stock
O b) To expand the size of plant
c) To replace worn out machines
O d) None of these​

Answer 1

Answer:

c option is ur answer ..

Explanation:

hope it helps you ✌️ ✌️

Answer 2

Answer:

Depreciation reserve is a business fund in which the probable replacement cost of equipment is accumulated each year over the life of the asset. It can be replaced readily when it becomes obsolete and totally depreciated. It is the total depreciation charged against all productive assets as stated on the balance sheet.