Question

Which of the following is not true of depreciation accounting?

A. It retains funds by reducing income taxes and dividends.
B. Depreciation allocates replacement values as part of the matching of revenues and expenses.
C. It is not a matter of valuation. It is part of the matching of historical costs to revenues and expenses.

Answer 1

Answer:

B. Depreciation allocates replacement values as part of the matching of revenues and expenses.

Explanation:

Depreciation allocates replacement values as part of the matching of revenues and expenses is not entirely true about depreciation accounting.