Accounting Multiple Choice Question – 22 July 2022

Why is a provision for depreciation made in accounts?

Select ONE answer:

1. to charge the cost of fixed assets against profits
2. to make a provision for repairs
3. to make cash available to replace fixed assets when necessary
4. to show the current market values of fixed assets

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 1

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

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