Question

What is the principal purpose of charging depreciation on non-current assets?​

Answer 1

Answer:

Noncurrent assets can be depreciated using the straight-line depreciation method by subtracting the asset's salvage value from its cost basis and dividing it by the total number of years in its useful life. Thus, the depreciation expense under the straight-line basis is the same for every year of its useful life.

Answer 2

Answer:

To spread the cost of the assets over their estimated useful lives

Explanation:

The principal purpose of charging depreciation is done to match or show the real value of the fixed asset during a specific time period. It shows the economic benefit of the asset over the end of its useful life.