Final answer:
The false statement is that depreciation is an account used to save money for a new asset. Depreciation is actually an accounting method to allocate the cost of a tangible asset over its useful life, recorded as an expense and impacting the balance sheet through the accumulated depreciation account.
Step-by-step explanation:
The false statement among the given options is: a. Depreciation is an account used to save money for a new asset. Depreciation is not an account to save money but an accounting method used to allocate the cost of a tangible asset over its useful life, reflecting the decrease in value as the asset wears out or becomes obsolete. Depreciation is recorded as an expense in the income statement and impacts the value of assets on the balance sheet through accumulated depreciation, which denotes the total amount of depreciation expense that has been recorded for an asset since it was put into use.
To clarify the other options, b. Depreciation reflects the decrease in the value of an asset due to wear and tear or the passage of time is correct as it represents how an asset's value is reduced over time. c. Accumulated depreciation is the buildup of depreciation expense over time is also correct because it is the cumulative amount of depreciation that an asset has incurred. d. Depreciation expense does not necessarily reflect the true change in the market value of an asset is true since it is based on a systematic allocation method, not on real-time market conditions. The amount recorded in depreciation doesn't represent the actual money set aside for the replacement of the asset.