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    Question

    Depreciation is charged as per which principle?

    A Prudence Correct Answer Incorrect Answer
    B Going Concern Correct Answer Incorrect Answer
    C Consistency Correct Answer Incorrect Answer
    D Matching Correct Answer Incorrect Answer
    E Dual Aspect Correct Answer Incorrect Answer

    Solution

    Depreciation is the value which is written off out of the wear and tear of a Non-Current Asset. Since the asset is used across the useful life of the asset, therefore, the revenues generated should be matched with the expenses incurred across the useful life.

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