The periodic expense created by allocating the cost of plant and equipment to the periods in which they are used,representing the expense of using the assets,is called:
A)Accumulated depreciation.
B)A contra account.
C)The expense recognition (matching)principle.
D)Depreciation expense.
E)An accrued account.

Question

Quizplus · Accepted Answer

The periodic expense created by allocating the cost of plant and equipment to the periods in which they are used is referred to as depreciation expense. This represents the recognized expense of using the assets over time, as stated in the matching principle. Accumulated depreciation is not an expense but a contra asset account, and not an accrued account either. Therefore, the correct answer is D.

The Periodic Expense Created by Allocating the Cost of Plant