Accounting for IGCSE & O level - Accounting Procedures (Section 26 - No. 14)
Why might a business choose the revaluation method for depreciation?
To account for the fluctuating market value of an asset.
Because it's easier than the other methods.
To always reflect an asset's original cost.
To avoid paying taxes.
Explanation
The revaluation method allows a company to reflect the true value of the asset on its books, accounting for the changing market value.
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