What Accounting Principle Justifies Depreciating Certain Long-Term Assets

question 258

Multiple Choice

What accounting principle justifies depreciating certain long-term assets?

• A)the revenue principle
• B)the depreciation principle
• C)the cost-based principle
• D)the matching principle

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Definitions:

Bureaucracy

A system of government or management that is characterized by specialized roles, hierarchical structure, and adherence to fixed rules.

Reference Group

A social group that an individual uses as a standard for evaluating themselves and their own behavior.

Organizational Operations

The activities and practices involved in running a business or other organization effectively, including planning, strategy, and execution of various functions.

Mandate

An authoritative command or instruction, often given by voters to elected officials or by higher authorities to subordinates.