Accounting for IGCSE & O level - Final Statements (Section 10 - No. 37)
What is the primary function of depreciation?
To determine the market value of an asset.
To allocate the cost of an asset over its useful life.
To calculate the replacement cost of an asset.
To increase a company's profits.
Paliwanag
Depreciation systematically allocates an asset's cost over its useful life.