Which of the following serves as the justification for the periodic recording of depreciation expense?
A) Association of efforts (expense) with accomplishments (revenue)
B) Systematic and rational allocation of cost over the periods benefited
C) Immediate recognition of an expense
D) Minimization of income tax liability

Question

Quizplus · Accepted Answer

The periodic recording of depreciation expense is justified by the systematic and rational allocation of cost over the periods benefited. Depreciation is the process of allocating the cost of a tangible asset over its useful life, and recording depreciation expense each period is a way to distribute the cost of the asset in a way that matches its contribution to revenue over time.

Which of the Following Serves as the Justification for the Periodic