Accounting 9706 · AS & A Level · Accounting for non-current assets

Accounting for non-current assets — practice question

Why does a business record depreciation on its non-current assets?

  • Ato retain profits for the replacement of worn out assets
  • Bto show the value of the assets in the statement of financial position
  • Cto show when an asset needs replacing
  • Dto spread the cost of the assets over their useful lives

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