Which of the following is/are the important characteristic of depreciation?
Which of the following is/are the important characteristic of depreciation?
The correct option is D None of the above.
Depreciation is only charged on non-current assets. Depreciation occurs from the date of purchase of an asset, till the last day of its estimated useful life.
The amount of annual depreciation cannot be exact as it has to be estimated.It represents gradual and continuous reduction in the value of asset.
Depreciation is charged against income of the relevant accounting periods over the useful life of the asset.
Depreciation does not consider fluctuations in market value of assets, so depreciation may be charged even in the year in which market value is increased.
Total depreciation charged on an asset over its useful life cannot go beyond its depreciable value (cost less residual value).
Land is not a depreciable non-current asset.
Depending upon the nature of the asset, businesses may choose any depreciation method to calculate the annual depreciation charge.e of the above.
Depreciation is only charged on non-current assets.
Depreciation occurs from the date of purchase of an asset, till the last day of its estimated useful life.
The amount of annual depreciation cannot be exact as it has to be estimated.It represents gradual and continuous reduction in the value of asset.
Depreciation is charged against income of the relevant accounting periods over the useful life of the asset.
Depreciation does not consider fluctuations in market value of assets, so depreciation may be charged even in the year in which market value is increased.
Total depreciation charged on an asset over its useful life cannot go beyond its depreciable value (cost less residual value).
Land is not a depreciable non-current asset.
Depending upon the nature of the asset, businesses may choose any depreciation method to calculate the annual depreciation charge.e of the above.
