What accounting concept justifies the usage of depreciation and amortization policies?
A) Going concern assumption
B) Fair value principle
C) Full disclosure principle
D) Monetary unit assumption

Question

Quizplus · Accepted Answer

The going concern assumption states that the company will continue operating for the foreseeable future. Thus, accounting policies such as depreciation and amortization recognize that the assets are being used over a long period of time and need to be accounted for accordingly.

What Accounting Concept Justifies the Usage of Depreciation and Amortization