Robert Rogers, CPA, Owns a Computer That Is Used in His

question 35

Multiple Choice

Robert Rogers, CPA, owns a computer that is used in his consultancy services. As per the matching principle, the related account that should appear on the income statement for the year ended December 31, 2014 is:

• A)Depreciation Expense.
• B)Service Revenue.
• C)Accumulated Depreciation.
• D)Equipment Expense.

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Definitions:

Draft

A preliminary version of a document or plan that is subject to revision.

Accept

To agree to receive or undertake something offered.

Payee

A payee is the individual or entity to whom a payment is made, typically named or designated in a financial transaction document.

Negotiation

The transfer of a negotiable instrument in such form that the transferee becomes a holder.