Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 27 - No. 10)
What does 'depreciation' represent?
The increase in value of an asset.
The allocation of an asset's cost over its useful life.
The current market value of an asset.
The accumulated profits of a business.
Explanation
Depreciation is the systematic allocation of the cost of a tangible asset over its estimated useful life.
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