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:

Cross-Price Elasticity

A measure of how the quantity demanded of one good responds to a change in the price of another good.

Substitutes

Goods or services that can be used in place of each other, where an increase in the price of one leads to an increase in demand for the other.

Price Inelastic Demand

A situation where the quantity demanded of a good does not change significantly in response to changes in its price.

Luxury

Goods or services that are considered superior in quality and high in price, often seen as status symbols and not essential for basic needs.