Accounting for IGCSE & O level - Accounting Procedures (Section 9 - No. 1)

What is the purpose of depreciation?
To reduce the value of a non-current asset each year.
To estimate the working life of an asset.
To increase profits over time.
To estimate the cost of a current asset.

Explanation

Depreciation reduces the value of a non-current asset on the balance sheet.

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