Depreciating equipment over its useful life is an example of
A)following the objectivity assumption.
B)applying the realization principle.
C)applying the matching principle.
D)applying the conservatism constraint.

Question

Quizplus · Accepted Answer

Depreciating equipment over its useful life is an application of the matching principle, which requires that expenses be recognized in the same period as the revenues they help generate. By gradually expensing the cost of equipment over its useful life, companies can match the expense of the equipment against the revenue it helps to generate.

Depreciating Equipment Over Its Useful Life Is an Example of