O-LevelAccountingAccounting procedures7707/11 · May/June 2023 · Q161 Mark

Which statement about depreciation is correct?

AIt is a cash fund to replace a non-current asset.

BIt is a monetary expense as it involves the outflow of money.

CIt is an estimate of the loss in value of a current asset over its expected life.

DIt is recorded in the nominal ledger and the income statement.

✓ Correct answer

D: It is recorded in the nominal ledger and the income statement.

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2023 Paper 1 Variant 1, question 16.

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