Matching the cost of an asset with the revenue it is expected to produce is called
A) adjusting.
B) expensing.
C) depreciation.
D) contra-valuing.

Question

Quizplus · Accepted Answer

Matching the cost of an asset with the revenue it is expected to produce is called depreciation. This is the process by which the cost of a long-term asset is allocated over its useful life, with the aim of matching the cost to the periods in which it contributes to generating revenue.

Matching the Cost of an Asset with the Revenue It