Accounting for IGCSE & O level - Accounting Procedures (Section 11 - No. 46)
What is the purpose of a Provision for Depreciation account?
To record the original cost of the asset.
To record the asset's current market value.
To record the total depreciation expense recognized for an asset over its life.
To record the asset's salvage value.
Explanation
It shows the total amount of depreciation that has been expensed up to a specific point in time.