It is necessary to report both the cost and the accumulated depreciation of plant assets in the financial statementsGroup of answer choicesTrueFalse

Answer

This statement is True.

In financial statements, it is essential to report both the cost of plant assets and the accumulated depreciation associated with those assets. The cost represents the amount paid to acquire the asset, while accumulated depreciation reflects the total depreciation expense that has been charged against the asset over its useful life.

Reporting both figures provides a clearer picture of the asset's current value on the balance sheet. The net book value of the asset, calculated as the cost minus accumulated depreciation, is important for stakeholders to assess the financial health and operational efficiency of a company. Therefore, presenting both cost and accumulated depreciation is vital for accurate financial reporting.