How Is the Matching Principle Related to the Recording of Depreciation

question 25

Multiple Choice

How is the matching principle related to the recording of depreciation on tangible operational assets?

• A) The matching principle requires a company to use the same depreciation.
• B) Once a depreciation method is adopted for a particular asset, the owner must continue to use the same method.
• C) The accountant who calculates the depreciation may assume that the company will continue in business at least as long as the estimated useful life of the asset.
• D) A portion of the cost of the asset should be allocated as an expense for the periods in which the asset helps the business to earn revenue.

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