Accountancy, asked by danny57, 10 months ago

"Providing depreciation ensures sufficient cash for the replacement of an asset"
Is this statement true??Why?​

Answers

Answered by saiedkhan5538Khan
0

Answer:

Sorry

Explanation:

but i am not understing for your quetion

Answered by pintusingh41122
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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