Accounting · Depreciation, Provisions and Reserves
Which of the following statements regarding depreciation accounting is false?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Depreciation is an expense to a business and therefore, it is classified as a nominal account
- 2A normal depreciation expense account has a credit balance in nature because it is an expenditure✓
- 3Accumulated depreciation is recorded in a contra-asset account as a credit, reducing the gross value of fixed assets
- 4Depreciation expense is recorded on the income statement as an expense, reducing net income
Correct answer
A normal depreciation expense account has a credit balance in nature because it is an expenditure
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Accounting?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Depreciation, Provisions and Reserves MCQs →Want more practice questions on Depreciation, Provisions and Reserves?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Accounting · Depreciation, Provisions and Reserves