Robert Rogers,CPA owns a computer used for the company's business.The matching principle would require that which of the following accounts appear on the income statement for the year ended December 31?
A) Depreciation expense
B) Service revenue
C) Accumulated depreciation
D) Equipment expense

Question

Quizplus · Accepted Answer

The matching principle requires that expenses (such as depreciation) be matched with the revenues they helped to generate. Therefore, depreciation expense (option A) should appear on the income statement, while accumulated depreciation (option C) is a contra asset account and does not affect the income statement. Service revenue (option B) would also appear on the income statement, but it is not related to the question since it pertains to revenue rather than expenses. Equipment expense (option D) is not a common account and is not necessary for this question.

Robert Rogers,CPA Owns a Computer Used for the Company's Business