O-LevelAccountingAccounting principles and policies7707/11 · May/June 2021 · Q121 Mark
Why does a business provide for depreciation on non-current assets?
Ato charge the cost of non-current assets against profit in the year of purchase
Bto ensure that non-current assets appear at book value in the statement of financial position
Cto ensure that the matching principle is applied when preparing financial statements
Dto retain cash in the business for replacement of non-current assets
✓ Correct answer
C: to ensure that the matching principle is applied when preparing financial statements
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