Depreciation helps in determining ........

Accountancy (11th) Chapter-7 Depreciation, Provisions and reserves

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Depreciation helps in determining

Accurate level of profit

Increases the value of asset

Revenue generation

Increase the burden of tax

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Explanation:

The purpose of depreciation is to achieve the matching principle of accounting, that is, a company is attempting to match the historical cost of a productive asset (that has a useful life of more than a year) to the revenues earned from using the asset.