How Is the Matching Principle Related to the Recording of Depreciation

question 10

Multiple Choice

How is the matching principle related to the recording of depreciation on tangible operational assets?

• A)The matching principle requires a company to use the same depreciation.
• B)Once a particular depreciation method is adopted for a particular asset,the owner must continue to use the same method.
• C)The accountant who calculates the depreciation may assume that the company will continue in business as long as the estimated useful life of the asset.
• D)A portion of the cost of the asset should be allocated as an expense for the periods in which the asset helps the business to earn revenue.

---

Definitions:

Political Jurisdictions

Defined areas under the authority of certain governmental entities where specific laws, regulations, and powers are applied and enforced.

Urban Sprawl

The uncontrolled expansion of urban areas into the surrounding countryside, often characterized by low-density residential development, increased reliance on personal vehicles, and loss of natural habitats.

Low-Cost Gasoline

Gasoline that is available at a lower price, often due to government subsidies, regional availability, or lessened environmental regulations.

Government-Funded Highways

Roads and transport routes built and maintained by the government using public funds.