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

Accounting for non-current assets — practice question

Why do businesses apply depreciation to their non-current assets?

  • Ato ensure that sufficient cash is available to replace the assets
  • Bto show the realisable value of the assets in the statement of financial position
  • Cto spread the cost of the assets over their estimated useful life
  • Dto show when the assets must be replaced

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