Which of the Following Requires Businesses to Record Depreciation

question 194

Multiple Choice

Which of the following requires businesses to record depreciation?

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

---

Definitions:

Reserve Ratio

The fraction of depositors' balances banks must have on hand as cash, a regulatory requirement designed to ensure banks' liquidity and stability.

Inflation

The pace at which prices for goods and services broadly ascend, causing the value of money to decrease.

Federal Reserve System

The central banking system of the United States, responsible for regulating the national money supply and ensuring financial stability.

Banking Acts

Laws regulating the operation of banks, aiming to ensure stability and confidence in the financial system.