The matching principle dictates whether the cost of a repair should be expensed or depreciated.

Name: The matching principle dictates whether the cost of a repair should be expensed or depreciated.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The matching principle requires that expenses be matched to the revenues they help generate. Therefore, if a repair is expected to benefit future periods, it should be capitalized and depreciated over its useful life rather than expensed in the current period.

The Matching Principle Dictates Whether the Cost of a Repair