Final answer:
Option (2), Not all plant assets need to be depreciated for accounting purposes; land is a common example of a fixed asset that is not depreciated because it typically does not lose value over time.
Step-by-step explanation:
The statement that all plant assets (fixed assets) must be depreciated for accounting purposes is false. In accounting, most plant assets such as buildings, machinery, and equipment are subject to depreciation as they have a limited useful life and their value decreases over time. However, there are exceptions to this rule. Not all fixed assets are depreciable.
For example, land is a common plant asset that is not depreciated because it generally does not lose value over time. Therefore, while many fixed assets do undergo depreciation, it is not a requirement for all such assets. The determination of whether a fixed asset should be depreciated depends on its useful life and salvage value.