What Is the Main Purpose of Recording Depreciation

question 95

Multiple Choice

What is the main purpose of recording depreciation?

• A)To allocate the cost of a tangible asset to the periods in which its use contributes to earning revenue.
• B)To estimate the remaining useful life of the asset.
• C)To report the asset on the statement of financial position at the estimated amount for which the asset could be sold on the statement of financial position date.
• D)To estimate the current replacement cost of the asset.

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