O-LevelAccountingAccounting principles and policies7707/13 · Oct/Nov 2023 · Q171 Mark
What is a reason for charging depreciation on a non-current asset?
Ato build up a fund of money that can be used to replace the asset
Bto charge the cost of the asset over the years which benefit from its use
Cto ensure that profit is not understated in the income statement
Dto show the asset at its market value in the statement of financial position
✓ Correct answer
B: to charge the cost of the asset over the years which benefit from its use
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