Which of the following statements is false?

Select one:

a. An assets book value equals the cost of the asset minus accumulated depreciation.

b. Depreciation is a process of allocating the cost of a fixed asset over its useful life.

c. A firm depreciates its assets in order to create a fund to replace the asset at the end of its useful life.

d. Annual depreciation charge does not express a reduction of an assets fair value.

e. According the matching principle a firm depreciates its assets in order to match the cost of the assets with the revenues that are generated over the assets useful life.