A-LevelAccountingAccounting for Non-Current Assets and DepreciationOct/Nov 2011Paper 1 Q171 Mark
Why is a provision for depreciation made in the financial statements?
Ato charge the cost of non-current assets against profits
Bto make a provision for repairs
Cto make cash available to replace non-current assets when necessary
Dto show the current market values of non-current assets
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of accounting for 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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