• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Contradictory statement

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Contradictory statement

  • This topic has 3 replies, 2 voices, and was last updated 3 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • October 29, 2021 at 9:42 pm #639411
    maximus07
    Participant
    • Topics: 446
    • Replies: 437
    • ☆☆☆☆

    What is the purpose of charging depreciation in financial statements?
    A To allocate the cost of a non-current asset over the accounting periods expected to benefit from its use
    B To ensure that funds are available for the eventual replacement of the asset
    C To reduce the cost of the asset in the statement of financial position to its estimated market value
    D To account for the ‘wearing-out’ of the asset over its life

    Answer is A. (this question is from BPP kit 7.1)
    It is legit but a statement in Intangible asset (Kaplan Study text “Difference between Tangible and Intangible Assets) says that “depreciation is reflection of wearing out of asset over its useful life”. It makes me think that D is also correct. Can you help me, Professor?

    October 30, 2021 at 6:06 am #639424
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54724
    • ☆☆☆☆☆

    The answer is certainly A and I stress this in my free lectures.

    The asset will presumably wear out, but that is not the reason for depreciation.

    Please stop asking me to explain what Kaplan may or may not state. Our lectures are a complete free course and cover everything needed to be able to pass the exam well.

    October 30, 2021 at 6:53 am #639429
    maximus07
    Participant
    • Topics: 446
    • Replies: 437
    • ☆☆☆☆

    Alright professor. Thank you 🙂

    October 30, 2021 at 5:23 pm #639490
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54724
    • ☆☆☆☆☆

    You are welcome.

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Contradictory statement’ is closed to new replies.

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • ParthivP on FA Chapter 5 Questions IAS 37 – Provisions, Contingent Liabilities and Contingent Assets
  • Ken Garrett on Marketing – ACCA Accountant in Business (AB)
  • Relebohile10 on CIMA P2 Chapter 1 Test
  • AhmedRiflan on Business Documentation – ACCA Financial Accounting (FA) lectures
  • AhmedRiflan on Marketing – ACCA Accountant in Business (AB)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in