Home »
MCQs »
Commerce MCQs »
Depreciation MCQs
What is the reason behind making a provision for depreciation in accounts?
4. What is the reason behind making a provision for depreciation in accounts?
- To show the current value of assets
- To show current liabilities
- To charge the cost of assets against profits
- To purchase new assets
Answer: C) To charge the cost of assets against profits
Explanation:
A depreciation arrangement can make an organization's accounting report all the more precisely mirror the current worth of the ventures it has made in fixed resources over the long haul.