A-LevelAccountingAccounting for non-current assets9706/12 · May/June 2025 · Q61 Mark

What is the purpose of depreciating a non-current asset?

Ato allocate its cost over its useful life

Bto reflect its market value

Cto reflect its replacement cost

Dto reserve funds for its future replacement

✓ Correct answer

A: to allocate its cost over its useful life

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Topic: Accounting for non-current assets, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2025 Paper 1 Variant 2, question 6.

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