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What is the reason behind making a provision for depreciation in accounts?

4. What is the reason behind making a provision for depreciation in accounts?

1. To show the current value of assets
2. To show current liabilities
3. To charge the cost of assets against profits
4. To purchase new assets

Answer: C) To charge the cost of assets against profits

Explanation:

A depreciation arrangement can make an organization's accounting report all the more precisely mirror the current worth of the ventures it has made in fixed resources over the long haul.