CUET Preparation Today
Read the given below two statements and mark the correct answer. Assertion (A): Depreciation is a non-cash operating expense. |
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A). Assertion (A) is true but Reason (R) is False Assertion (A) is false but Reason (R) is true |
Assertion (A) is true but Reason (R) is False |
The correct answer is option 3- Assertion (A) is true but Reason (R) is False. Assertion (A): Depreciation is a non-cash operating expense. THIS IS TRUE. Depreciation is a non-cash expense. It does not involve any cash outflow. It is the process of writing-off the capital expenditure already incurred. Reason (R) : Depreciation is increase in the value of a tangible fixed asset. THIS IS FALSE. Depreciation is decline in the value of a tangible fixed asset not increase it. Depreciation is decline in the value of a tangible fixed asset. In accounting, depreciation is the process of allocating depreciable cost over useful life of a fixed asset. Thus, the correct answer is Assertion (A) is true but Reason (R) is False. |
