Which of the Following Accounting Principles Best Justifies Accelerated Depreciation

question 209

Multiple Choice

Which of the following accounting principles best justifies accelerated depreciation accounting?

• A)Materiality
• B)Matching
• C)Full disclosure
• D)Consistency

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Definitions:

Retained Earnings

The portion of a company's net income that is not distributed to shareholders as dividends but is retained by the company to reinvest in its core business or to pay debt.

Accounts Payable

The amounts owed by a business to its suppliers or creditors for goods and services received but not yet paid for.

Spreadsheet

A digital tool that organizes data in columns and rows, commonly used for calculations and data analysis.

Cash Flows

The complete volume of financial transactions entering and exiting a business, with a key effect on its financial fluidity.