Accounting · Depreciation
Which of the following statements best justifies charging depreciation every year on fixed assets?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1To create a fund for replacement of the asset
- 2To allocate the cost of the asset over its useful life and match it with revenue✓
- 3To record the market value of the asset annually
- 4To reduce taxable income every year
Correct answer
To allocate the cost of the asset over its useful life and match it with revenue
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