Matching the Cost of an Asset with the Revenue It

question 68

Multiple Choice

Matching the cost of an asset with the revenue it is expected to produce is called

• A) adjusting.
• B) expensing.
• C) depreciation.
• D) contra-valuing.

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Definitions:

Contingent Liabilities

Potential liabilities that may occur depending on the outcome of a future event.

Contingency

An uncertain event or condition that can have a positive or negative impact on a company's financial position if it occurs.

Materialize

To become real or actual; in finance, it refers to the realization of expected results, risks, or events in tangible form.