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

---

Definitions:

Interest

The cost of borrowing money or the payment received for the investment of money, typically expressed as a percentage of the principal.

Maturity Value

Maturity Value is the amount payable to an investor at the maturity date of a financial instrument, typically including the principal and the interest.

Note Receivable

A written promise to pay a specified amount, usually interest-bearing, that is recognized as an asset on the lender's balance sheet.

Promissory Notes

Written promises to pay a specified sum of money to a certain person or entity at a defined time or on demand.