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Depreciation MCQs
What is the principal objective of Depreciation?
2. What is the principal objective of Depreciation?
- Show last year's profit.
- Show records to Income Tax Department.
- To get a tax rebate.
- To calculate net profit.
Answer: D) To calculate net profit
Explanation:
The primary target of giving depreciation is to ascertain the genuine benefit and give assets to the substitution of fixed resources.