Why is depreciation provided on non-current assets? a. so that the business entity concept is applied O b. so that there is enough cash in the business to replace them О с. so that the cost is allocated to periods that benefit from them d. so that they are shown at market value

Why is depreciation provided on non-current assets? a. so that the business entity concept is applied O b. so that there is enough cash in the business to replace them О с. so that the cost is allocated to periods that benefit from them d. so that they are shown at market value

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4MC: Which of the following statements about capitalizing costs is correct? A. Capitalizing costs refers...

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Question

Why is depreciation provided on non-current assets?
а.
so that the business entity concept is applied
O b.
so that there is enough cash in the business to replace them
O c.
so that the cost is allocated to periods that benefit from them
O d.
so that they are shown at market value

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