Which of the following principles best describes the conceptual rationale for the methods of matching depreciation expense with revenues?
A) Partial recognition
B) Immediate recognition
C) Systematic and rational allocation
D) Associating cause and effect

Question

Quizplus · Accepted Answer

The matching principle in accounting requires that expenses be matched with related revenues. This is accomplished through the systematic and rational allocation of depreciation expense over the useful life of an asset. By doing so, the expense is associated with the revenue it helps generate, in accordance with the cause and effect relationship between the two.

Which of the Following Principles Best Describes the Conceptual Rationale