Accounting for IGCSE & O level - Accounting Procedures (Section 23 - No. 2)
What is the primary goal of accounting for depreciation?
To reflect the original cost of the asset.
To estimate the current market value of the asset.
To allocate the cost of the asset over its useful life.
To minimize the tax burden on the business.
Explanation
Depreciation is used to allocate the cost of an asset over the time it's used.
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