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:

Process

Involves a series of actions or steps taken in order to achieve a particular end, often relating to systematic operations or procedures.

Transactional Event

An exchange or interaction between parties that usually involves a change in status or condition, often used in reference to business or economic activities.

Restricted

Limited or confined within certain parameters, boundaries, or conditions, often imposed by external factors or regulations.

Coercive Power

The ability to compel or force someone to act in a certain way through threats, punishments, or control measures.