The main objective of providing depreciation is to?
ABoth A. and B. above
BProvide funds for replacement of fixed assets
CCalculate the true profit
DShow the true financial position in the Balance Sheet
Correct answer
D. Show the true financial position in the Balance Sheet
Explanation
The main objective of providing depreciation is to find out the true Net Profit or Loss for an accounting period and to present a true and fair view of the state of affairs of the business. Providing funds for replacement is only an ancillary objective and not the main objective.]