Which of the Following Accounting Principles Requires Depreciation

question 116

Multiple Choice

Which of the following accounting principles requires depreciation?

• A)The entity concept
• B)The matching principle
• C)The reliability principle
• D)The profit recognition principle

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Definitions:

Replenishment Cycles

The repeated process of refilling or restocking inventory to maintain a desired level of products available for sale or use.

Safety Inventory Calculations

Methods or formulas used to determine the appropriate level of safety stock to hold to minimize risks of outages.

Supply Uncertainty

Refers to the unpredictability in the availability and timely delivery of materials and resources needed for production.

Required Levels

The specified minimum or maximum amounts of resources, inventory, or capacity needed to meet operational demands.