Depreciation is decline in the market value of tangible fixed assets.

True

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False

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Solution

The correct option is B False
Depreciation is not the result of fluctuations in the value of fixed assets since, the fluctuation is concerned with the market price of the fixed asset whereras the depreciation is concerned with the historical cost. Depreciation is the decline in the original cost of the tangible fixed assets.

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Depreciation is decline in the value of assets due to:

Which one of the following tangible fixed assets would not normally be depreciated?

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