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

Question

Quizplus · Accepted Answer

The periodic recording of depreciation expense is justified by the systematic and rational allocation of cost over the periods benefited. This means that the cost of an asset is spread out over its useful life, reflecting the fact that it provides benefits to the company over multiple periods rather than only in the period it was acquired. This approach provides a better matching of expenses with revenues since it recognizes the expense of using an asset over its useful life rather than immediately, and helps to ensure that financial statements accurately reflect the company's financial position and performance over time.

Which of the Following Serves as the Justification for the Periodic