Chapter 9 True or False
The balance in accumulated depreciation represents the total cost that has been charged to the expense
True
The revenue producing ability of a depreciable asset will decline due to wear and tear and to obsolescence
True
Depreciation provides for the proper matching of expenses with revenues
True
Depreciation applies to three classes of plant assets: land, buildings, and equipment
False
Depreciation doesn't apply to a building because its usefulness and revenue-producing ability generally remain intact over time
False
Depreciation expense and accumulated depreciation are reported on the income statement
False
Four factors affect the computation of depreciation: cost, useful life, salvage value, and residual value
False
The book value of a plant asset should approximate its fair value
False
Depreciation is a process of cost allocation, not asset valuation
True
Recognizing depreciation on an asset results in an accumulation of cash for replacement of the asset
True