A-LevelAccountingDepreciation and Non-Current AssetsMay/June 2020Paper 1 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
The correct answer is C. This question tests the candidate's understanding of depreciation and non-current assets 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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