Kostner Financial Services Inc.purchased computers that are to be used in its consultancy services.As per the matching principle,the related account that should appear on the balance sheet as of December 31,2014 is ________.
A)Depreciation Expense
B)Service Revenue
C)Accumulated Depreciation
D)Equipment Expense

Question

Quizplus · Accepted Answer

As per the matching principle, the cost of the computers should be recorded as an asset on the balance sheet and gradually depreciated over its useful life. Therefore, the related account that should appear on the balance sheet as of December 31, 2014, is Accumulated Depreciation, which represents the total amount of depreciation allocated to the asset since its acquisition.