Robert Rogers,CPA Owns a Computer Used for the Company's Business

question 115

Multiple Choice

Robert Rogers,CPA owns a computer used for the company's business.The matching principle would require that which of the following accounts appear on the income statement for the year ended December 31?

• A) Depreciation expense
• B) Service revenue
• C) Accumulated depreciation
• D) Equipment expense

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Definitions:

Legal Entity

An entity recognized by law as separate from its owners, possessing legal rights to enter contracts, sue, and be sued.

Tax Information

Relevant data and documents related to tax laws, filing requirements, rates, and deductions applicable to individuals or businesses.

IRS

The Internal Revenue Service, a U.S. government agency responsible for the collection of taxes and enforcement of tax laws.

C Corporation

A legal structure for a corporation in which the owners, or shareholders, are taxed separately from the entity.