A-LevelAccountingAccounting for non-current assets9706/12 · Oct/Nov 2014 · Q101 Mark

What is the purpose of providing for depreciation?

Ato apply the matching principle

Bto calculate the true value of non-current assets

Cto ensure that money is available for repair of non-current assets

Dto provide cash in the business for replacement of non-current assets

✓ Correct answer

A: to apply the matching principle

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Topic: Accounting for non-current assets, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2014 Paper 1 Variant 2, question 10.

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