1 Exercise 9-4 2 G H 3 Indentify each statement as True or False. If false, indicate how to correct the statement. 4 5 6 1. Depreciation is a process of asset valuation not cost allocation. 7 8 9 10 11 12 2. Depreciation provides for the proper matching of expenses and revenues. 13 14 15 16 17 18 3. The book value of a plant asset should approximate its fair value. 19 20 21 22 23 24 4. Depreciation applies to three classes of plant assets: land, buildings and equipment. 25 26 27 28 29 30 5. Depreciation does not apply to a building because its usefulness and revenue-producing ability generally remain intact over time. 31 32 33 34 35 36 6. The revenue producing ability of a depreciable asset will decline due to wear and tear of the asset. 37 38 39 401 41 +