Day: March 8, 2024

Accounting Multiple Choice Question – 8 March 2024

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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What is the reasoning behind charging depreciation in historical cost accounting?

Select ONE answer:

  1. To ensure funds are available for the eventual replacement of the asset.
  2. To comply with the consistency concept.
  3. To ensure the asset is included in the statement of financial position at the lower of cost and net realisable value.
  4. To match the cost of the non-current asset with the revenue that the asset generates.

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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