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The main objective of providing depreciation is to

This question belongs to Commerce Accounting
Accounting
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The main objective of providing depreciation is to

Answer & Solution
Correct Answer: Option C
The main objective of providing depreciation is to Create funds for replacement of fixed assets. The main objective of charging depreciation is to accumulate adequate fund to replace old asset with the new one after the useful life. Depreciation is charged to fixed assets which helps to show the current value of the asset.
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4 Comments
Remesh A
Remesh A 9 months ago
I think option A is the correct answer....
Ramneek Sharma
Ramneek Sharma 3 years ago
Option A is correct
Bahar Ali
Bahar Ali 8 years ago
the main objective of providing depreciation is to = show true net profit position by avoiding inflating or deflating the net profit.
providing funds for replacement of asset is the secondary objective
Ramesh Chilaka
Ramesh Chilaka 8 years ago
Option a is correct.
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