Which of the following phrases best describes the purpose of the annual charge for depreciation within the

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Which of the following phrases best describes the purpose of the annual charge for depreciation within the historic cost accounting method?

(a) To allocate the cost of an asset over its useful life

(b) To measure the fall in the second-hand price of the asset

(c) To lower the reported profit on grounds of prudence

(d) To measure obsolescence as it arises

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Financial Accounting

ISBN: 9781292244471

8th Edition

Authors: Pauline Weetman

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