What is the primary purpose of recording depreciation in accounting?

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Determine the accurate profit earnedReflect the true financial status in the Balance SheetAccumulate reserves for asset replacementBoth A and B are correctNone of the above

Explanation

The principal aim of charging depreciation is to ascertain the accurate net profit or loss for a given accounting period and to depict a true and fair view of the company's financial position. Accumulating funds for replacing assets is a secondary consideration, not the primary purpose.