A State whether you consider the following statements to be true or false:

(a) The current cost of plant and machinery is likely to be its net realisable value.

(b) A company should distribute dividends from the current cost reserve.

(c) The market value of a monetary asset, for example trade debtors, will decrease during inflationary periods.

(d) A gearing adjustment is necessary where a company is financed solely by equity capital.

(e) Backlog depreciation is charged to the current cost reserve.