UPSC Exam > UPSC Questions > Consider the following:1. Depreciation is the...
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Consider the following:
1. Depreciation is the reduction in the value of capital assets due to wear and tear.
2. Different capital assets have different depreciation rates.
3. Depreciation rates of similar capital assets are same in different countries.
Which of the above given statements is/are correct?
1. Depreciation is the reduction in the value of capital assets due to wear and tear.
2. Different capital assets have different depreciation rates.
3. Depreciation rates of similar capital assets are same in different countries.
Which of the above given statements is/are correct?
- a)1 and 2
- b)2 only
- c)3 only
- d)1,2 and 3
Correct answer is option 'A'. Can you explain this answer?
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Verified Answer
Consider the following:1. Depreciation is the reduction in the value o...
Every asset undergoes depreciation. Government (Ministry of commerce and industry) announces the rates by which assets depreciate. Different rate of depreciation is set by different countries depending on their geography, climate, economic conditions etc.
Most Upvoted Answer
Consider the following:1. Depreciation is the reduction in the value o...
Depreciation and its characteristics
Depreciation is a term used to describe the decrease in the value of an asset over time due to wear and tear, obsolescence, or any other factor. The process of depreciation is used to account for the decrease in value of an asset over its useful life. It is a non-cash expense that is charged against profits to reflect the reduction in the value of capital assets.
Different capital assets have different depreciation rates
The rate of depreciation varies depending on the type of asset and its useful life. For example, the depreciation rate for a vehicle may be higher than that for a building, as vehicles tend to have a shorter useful life. Similarly, the depreciation rate for a computer may be higher than that for furniture, as technology changes more rapidly than furniture.
Depreciation rates of similar capital assets are same in different countries
The third statement is incorrect. While there may be some similarity in depreciation rates for similar assets across countries, there is no standard depreciation rate that is universally applicable. Different countries have different accounting standards and tax laws that govern the depreciation of assets. Therefore, the depreciation rates for similar assets may vary across different countries.
Conclusion:
Therefore, the correct answer is option 'A', which states that statements 1 and 2 are correct. Depreciation is the reduction in the value of capital assets due to wear and tear, and different capital assets have different depreciation rates. However, the third statement is incorrect as the depreciation rates of similar capital assets may vary across different countries.
Depreciation is a term used to describe the decrease in the value of an asset over time due to wear and tear, obsolescence, or any other factor. The process of depreciation is used to account for the decrease in value of an asset over its useful life. It is a non-cash expense that is charged against profits to reflect the reduction in the value of capital assets.
Different capital assets have different depreciation rates
The rate of depreciation varies depending on the type of asset and its useful life. For example, the depreciation rate for a vehicle may be higher than that for a building, as vehicles tend to have a shorter useful life. Similarly, the depreciation rate for a computer may be higher than that for furniture, as technology changes more rapidly than furniture.
Depreciation rates of similar capital assets are same in different countries
The third statement is incorrect. While there may be some similarity in depreciation rates for similar assets across countries, there is no standard depreciation rate that is universally applicable. Different countries have different accounting standards and tax laws that govern the depreciation of assets. Therefore, the depreciation rates for similar assets may vary across different countries.
Conclusion:
Therefore, the correct answer is option 'A', which states that statements 1 and 2 are correct. Depreciation is the reduction in the value of capital assets due to wear and tear, and different capital assets have different depreciation rates. However, the third statement is incorrect as the depreciation rates of similar capital assets may vary across different countries.
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Consider the following:1. Depreciation is the reduction in the value of capital assets due to wear and tear.2. Different capital assets have different depreciation rates.3. Depreciation rates of similar capital assets are same in different countries.Which of the above given statements is/are correct?a)1 and 2b)2 onlyc)3 onlyd)1,2 and 3Correct answer is option 'A'. Can you explain this answer?
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Consider the following:1. Depreciation is the reduction in the value of capital assets due to wear and tear.2. Different capital assets have different depreciation rates.3. Depreciation rates of similar capital assets are same in different countries.Which of the above given statements is/are correct?a)1 and 2b)2 onlyc)3 onlyd)1,2 and 3Correct answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following:1. Depreciation is the reduction in the value of capital assets due to wear and tear.2. Different capital assets have different depreciation rates.3. Depreciation rates of similar capital assets are same in different countries.Which of the above given statements is/are correct?a)1 and 2b)2 onlyc)3 onlyd)1,2 and 3Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following:1. Depreciation is the reduction in the value of capital assets due to wear and tear.2. Different capital assets have different depreciation rates.3. Depreciation rates of similar capital assets are same in different countries.Which of the above given statements is/are correct?a)1 and 2b)2 onlyc)3 onlyd)1,2 and 3Correct answer is option 'A'. Can you explain this answer?.
Consider the following:1. Depreciation is the reduction in the value of capital assets due to wear and tear.2. Different capital assets have different depreciation rates.3. Depreciation rates of similar capital assets are same in different countries.Which of the above given statements is/are correct?a)1 and 2b)2 onlyc)3 onlyd)1,2 and 3Correct answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following:1. Depreciation is the reduction in the value of capital assets due to wear and tear.2. Different capital assets have different depreciation rates.3. Depreciation rates of similar capital assets are same in different countries.Which of the above given statements is/are correct?a)1 and 2b)2 onlyc)3 onlyd)1,2 and 3Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following:1. Depreciation is the reduction in the value of capital assets due to wear and tear.2. Different capital assets have different depreciation rates.3. Depreciation rates of similar capital assets are same in different countries.Which of the above given statements is/are correct?a)1 and 2b)2 onlyc)3 onlyd)1,2 and 3Correct answer is option 'A'. Can you explain this answer?.
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