Which of the Following Accounting Principles Requires Depreciation

question 117

Multiple Choice

Which of the following accounting principles requires depreciation?

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

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Definitions:

Nonnegotiable

An item or condition that cannot be altered or discussed for change.

Three-Party Instrument

A financial document or contract involving three parties, where one party is typically promised payment by another, with the third acting as a guarantor or intermediary.

Payment Fund

A reserve of money that is set aside to cover future payments, debts, or expenses.

Fixed Amount

A precise sum or quantity that does not change or vary.