What is the purpose of making a provision for depreciation in the accounts?
A. To charge the cost of fixed assets against profits
B. To show the current market value of fixed asset
C. To make cash available to replace fixed assets
D. To make a provision for repairs
Answer:A
What is the purpose of making a provision for depreciation in the accounts?
A. To charge the cost of fixed assets against profits B. To show the current market value of fixed asset C. To make cash available to replace fixed assets D. To make a provision for repairs