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DP
Question Practice

What is the primary purpose of calculating depreciation in a business?

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA
CBSE
Class 11
Accountancy
Financial Accounting - I
Depreciation, Provisions and Reserves
Question Bank

What is the primary purpose of...

Single Answer MCQ
Q-00054257

What is the primary purpose of calculating depreciation in a business?

1

To increase asset value

2

To match costs with revenues

3

To determine market price

4

To eliminate tax liabilities

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Q1.

What is depreciation?

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Q2.

Which method calculates depreciation as a fixed percentage of the book value each year?

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Q3.

What factor does NOT affect the calculation of depreciation?

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Q4.

What is the salvage value in relation to depreciation?

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