Accounting for IGCSE & O level - Accounting Procedures (Section 25 - No. 32)
What is the purpose of a provision for depreciation account?
To record the original cost of an asset
To accumulate the depreciation expense over the life of an asset.
To track the market value of an asset
To track the cash used to buy an asset.
Explanation
The provision for depreciation account records and accumulates the depreciation expense throughout the asset's life.
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