Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 19 - No. 46)
Which of the following describes the purpose of the adjusting entry for depreciation?
To record the purchase of an asset.
To allocate the cost of an asset over its useful life.
To record the disposal of an asset.
To record the cash payment for an asset.
Explanation
Depreciation is the process of allocating the cost of an asset over its useful life.
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