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

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

What is one reason for charging depreciation on a non-current asset?

  • Ato build up a fund of money that can be used to replace the asset
  • Bto charge the cost of the asset over the years which benefit from its use
  • Cto ensure that profit is not understated in the income statement
  • Dto show the asset at its market value in the statement of financial position

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