Accounting 0452 · IGCSE · Accounting for depreciation and disposal of non-current assets

Accounting for depreciation and disposal of non-current assets — practice question

Why does a business make an allowance 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

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI