Depreciation Flashcards
1
Q
Explain why loose tools are revalued at the end of the financial year instead of using straight line or reducing balance method
A
Low value items which are not easy to depreciate separately
2
Q
Explain how providing for depreciation of non-current assets is an application of the principle of accruals
A
the loss in value of the non-current asset during the year (1) is set off against the revenue for the same period (1)
