The depreciation process follows the matching principle.

Name: The depreciation process follows the matching principle.
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Question

Quizplus · Accepted Answer

The matching principle requires that expenses are recognized in the same period as the revenue they helped generate. Depreciation is an expense that represents the gradual loss of value of a long-term asset over its useful life. Therefore, it follows the matching principle as it is recognized in the same period as the revenue generated from using the asset.

The Depreciation Process Follows the Matching Principle