O-LevelAccountingAccounting principles and policies7707/12 · Oct/Nov 2025 · Q161 Mark
Why does a business need to provide for depreciation in its accounting records?
Ato ensure availability of funds to replace its old non-current assets
Bto ensure that its current assets value is not overstated
Cto record as an expense the amount of the non-current assets used up during the year
Dto show its non-current assets at their market value
✓ Correct answer
C: to record as an expense the amount of the non-current assets used up during the year
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