Which of the Following Accounting Principles Requires Businesses to Record

question 64

Multiple Choice

Which of the following accounting principles requires businesses to record depreciation?

• A)the revenue recognition principle
• B)the matching principle
• C)the cost principle
• D)the going concern principle

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Definitions:

Limited Liability Partnership (LLP)

A partnership in which some or all partners have limited liabilities, protecting them from personal responsibility for the debts of the business.

Personally Liable

Being directly responsible for the payment of debts or the fulfillment of obligations from one's own assets.

Capital Contribution

The sum contributed by a business partner as a permanent investment in the business. It is then considered to be the property of the partnership.

Tenancy in Partnership

A form of co-ownership where partners in a business own property together, with rights and responsibilities defined by the partnership agreement.