Accounting Multiple Choice Question – 28 April 2022

Why is depreciation provided on non-current assets?

1. to ensure funds are available to replace the item
2. to ensure the profits of the business are not overstated
3. to match the cost of the asset with the revenue it earns

Select ONE answer:

1. 1, 2 and 3
2. 1 and 2 only
3. 1 and 3 only
4. 2 and 3 only

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

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