Accounting for IGCSE & O level - Accounting Procedures (Section 13 - No. 37)
What is the primary goal of depreciation in financial accounting?
To reflect the current market value of assets.
To allocate the cost of an asset over its useful life.
To minimize a company's tax liability.
To show the asset's physical deterioration.
Explanation
The primary goal is to allocate the cost over the asset's useful life, matching the cost to the period it's used.
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