Depreciation expense is reported for a not-for-profit organization's equipment and furniture.

True

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False

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Not defined

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None of these

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Solution

The correct option is A
True

True. Depreciation expense is considered and shown on the debit side of income and expenditure account.

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Q. In accounting for not-for-profit organizations, revenues and expenses are reported at amounts and most gains and losses arc reported at ________ and _________ amounts.

Depreciation is a non-cash expense which should not be provided for in the profit and loss account. Comment.

cot A

is not defined for

A = 0^{o}

Enter

1

for true and

0

for false

Q. Assertion :Depreciation amount is added back to net profit for calculating funds from operation in preparing a funds flow statement. Reason: Depreciation is an item of expense but not funds.

The balances in Equipment account and Accumulated depreciation account as on March 31, 2015 and 2016 are given below:
$\begin{matrix} Balance as at & March 31, 2015 & March 31, 2016 Equipment & 65, 00, 000 & 78, 70, 000 Accumulated depreciation & 10, 80, 000 & 16, 32, 000 \end{matrix}$
The equipment costing Rs. 12,30,000 accumulated depreciation thereon Rs. 7,18,000 was sold for Rs. 4,68,000.
Required:
(i) Compute the amount of equipment purchased, depreciation charged for the year and loss on sale of equipment.
(ii) How each of the item related to the equipment will be reported in the statement of cash flows?

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Depreciation expense is reported for a not-for-profit organization's equipment and furniture.

The correct option is A True True. Depreciation expense is considered and shown on the debit side of income and expenditure account.

The correct option is A
True

True. Depreciation expense is considered and shown on the debit side of income and expenditure account.