Robert Rogers,CPA owns a computer used by the business.The matching principle would require that which of the following accounts appear on the balance sheet for the year ended December 31?
A) Depreciation expense
B) Service revenue
C) Accumulated depreciation
D) Equipment expense

Question

Quizplus · Accepted Answer

The matching principle states that expenses should be matched with the revenue they generate. In this case, since Robert Rogers owns a computer used by the business, the cost of the computer should be reflected as an expense on the income statement over its useful life through depreciation. The corresponding account on the balance sheet would be Accumulated Depreciation, which represents the total amount of depreciation expense recognized over the life of the computer. Therefore, the correct choice is C, Accumulated Depreciation. Depreciation expense (A) and Equipment expense (D) would be reported on the income statement, while Service revenue (B) would not be related to the computer owned by Robert Rogers.

Robert Rogers,CPA Owns a Computer Used by the Business