O-LevelAccountingAccounting principles and policies7707/13 · Oct/Nov 2024 · Q171 Mark
Why should a business depreciate its non-current assets?
Ato charge the cost of an asset as an expense in the year of purchase
Bto ensure that cash is available to replace the non-current assets
Cto ensure the value of non-current assets is not understated
Dto match capital expenditure against the revenue it has helped to earn
✓ Correct answer
D: to match capital expenditure against the revenue it has helped to earn
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