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A-LevelAccountingNon-Current Assets and DepreciationFeb/Mar 2016Paper 1 Q21 Mark

Why is depreciation provided on non-current assets?

Aso that the cost is allocated to periods that benefit from them
Bso that the entity concept is applied
Cso that there is enough cash in the business to replace them
Dso that they are shown at market value

✓ Correct Answer

The correct answer is A. This question tests the candidate's understanding of non-current assets and depreciation within the Accountingsyllabus. The examiner's mark scheme requires...

📋 Examiner Report & Trap Analysis

Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...

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About This A-Level Accounting Question

This multiple-choice question appeared in the Cambridge A-Level Accounting (9706) Feb/Mar 2016 examination, Paper 1 Variant 2. It tests the topic of Non-Current Assets and Depreciation and is worth 1 mark.

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