हिंदी

Why is charging depreciation important for true profit calculation?

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प्रश्न

Why is charging depreciation important for true profit calculation?

विकल्प

  • It reduces asset value artificially

  • It spreads losses over all assets

  • It ensures expenses match income for each year

  • It increases asset value over time

MCQ
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उत्तर

It ensures expenses match income for each year

Explanation:

Charging depreciation matches the expense to the period when the asset generates income, helping show real profit.​

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