A-LevelAccountingAccounting for non-current assets9706/12 · May/June 2020 · Q41 Mark
Why do businesses charge depreciation on their non-current assets?
Ato ensure that sufficient cash is available to replace the assets
Bto show the realisable value of the assets in the statement of financial position
Cto spread the cost of the assets over their estimated useful life
Dto show when the assets must be replaced
✓ Correct answer
C: to spread the cost of the assets over their estimated useful life
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