Answer to Question #105146 in Accounting for Dumisane

Question

What is the purpose of charging depreciation?
Select one:
a. To ensure that funds are available for the eventual replacement of the non-current asset.
b. To reduce the cost of a non-current asset in the statement of financial position.
c. To comply with the prudence concept.
d. To allocate the cost of a non-current asset over the accounting periods expected to benefit from its use.

Answer 1

a.