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

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

Why must a business account for depreciation in its accounting records?

  • Ato ensure availability of funds to replace its old non-current assets
  • Bto ensure that its current assets value is not overstated
  • Cto record as an expense the amount of the non-current assets used up during the year
  • Dto show its non-current assets at their market value

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