The reason why companies make a provision for depreciation of their non-current assets is to save up

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‘The reason why companies make a provision for depreciation of their non-current assets is to save up enough money to buy new ones when the old assets reach the end of their lives.’ Discuss.

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Financial Accounting

ISBN: 9780273723073

1st Edition

Authors: Tony Davies, Ian Crawford

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Question Posted: May 08, 2024 02:00 PM

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The reason why companies make a provision for depreciation of their non-current assets is to save up

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The statement that companies make a provision for depreciation of their noncurrent assets to save up enough money to buy new ones when the old assets reach the end of their lives is a common misconcep...View the full answer

Financial Accounting

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