"Providing depreciation ensures sufficient cash for the replacement of an asset"
Is this statement true??Why?
Answers
Answered by
0
Answer:
Sorry
Explanation:
but i am not understing for your quetion
Answered by
1
Answer:
No, the statement is not true.
Explanation:
Providing or charging depreciation does not mean that the company is ensuring sufficient amount of cash for replacing the asset because the depreciation is the reduction or decrease in the value of the assets due to its wear and tear or it is the assigning of the cost to an asset to the expense in the accounting year and within the useful life of the asset.
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