state whether the following statements are true or false 563186

State whether the following statements are True or False

1. Depreciation is related to Depreciable Fixed Assets only.
2. Depreciation is the result of fluctuations in the value of fixed assets.
3. Depreciation is only a temporary decrease in the book value of the asset.
4. Depreciation covers depletion, amortization, and obsolescence.
5. In case of companies, it is compulsory to charge depreciation.
6. When the rate of depreciation is given as 10% p.a. along with the date of acquisition, depreciation amount is computed for the entire accounting period.
7. Depreciation is an amortized expenditure.
8. The expressions – depreciation is to be charged at 20% and 20% p.a. denote then same thing.
9. Historical cost of a depreciable asset affects the amount of depreciation.
10. Estimated residual value of a depreciable asset affects the amount of depreciation.
11. Straight Line Method is applied to have a uniform charge for depreciation and for repairs and maintenance together.
12. The interest on the capital invested in the asset is taken into consideration under Straight Line Method.
13. Under Straight Line Method, the book value of assets become zero or equal to its scrap value at the end of its useful life.
14. The items of transaction relating to revenue nature are usually debited to respective assets account.
15. Under Written Down Value Method of depreciation, the rate of depreciation remains constant, whereas the amount of depreciation goes on decreasing.
16. WDV method takes into consideration the interest on capital invested in the asset.
17. It takes a lengthy period to write as asset down to its break up value, under WDV method of depreciation.
18. Depreciation is charged at a fixed percentage on the original cost in all subsequent years.
19. The book value of the assets does not become zero under WDV method of depreciation.
20. Change in the Method of depreciation is made from the next accounting period.
21. Sinking Fund Method of depreciation provides a definite amount at a certain future for replacement of assets at the end of their useful life.
22. Depreciation Fund will appear under the head “Reserves and Surplus” on the Liabilities side of the Balance Sheet.
23. Depreciation Fund Investment Account shall appear on the Liabilities side of the Balance Sheet.
24. Depreciation is not provided in case of loss in an accounting year.
25. Providing depreciation in accounts reduces the amount of profits available for dividend distribution.