◈ Oracle PrepSign Up Free
O-LevelAccountingAccounting principles and policies7707/12 · Oct/Nov 2012 · Q151 Mark

What is the reason for charging depreciation on a non-current asset?

Ato accumulate a fund of money to replace an asset
Bto charge the cost of using an asset against income
Cto ensure profits are not understated
Dto show the market value of an asset

✓ Correct answer

B: to charge the cost of using an asset against income

Practise more questions on this topic

Oracle Prep sorts past-paper questions by topic, so you can drill Accounting principles and policies and see which topics are most likely to come up next.

Sign up free →

About this question

Topic
Accounting principles and policies, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source
O-Level Accounting, Oct/Nov 2012 Paper 1 Variant 2, question 15.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

Related Accounting questions

Accounting principles and policiesMay/June 20121m

A company purchased a new computer system. What would be recorded as revenue expenditure?

Accounting principles and policiesMay/June 20121m

What is depreciation?

Accounting principles and policiesMay/June 20121m

When might goodwill appear in a balance sheet?

Sources and recording of dataMay/June 20111m

Jane, a trader, withdrew $50 from the business bank account for office use. How is this recorded in Jane's books?

Accounting proceduresMay/June 20111m

Ann is a trader. On 1 April 2011 Cindy's account in Ann's ledger showed a credit balance of $520. The following trans…

Verification of accounting recordsMay/June 20111m

A trial balance fails to agree. The credit column totals $10 000. Two errors are then found. The sales journal has b…

← Browse all past-paper questions

© 2026 Oracle Prep