The concept that requires that accountants record amortization expense on equipment is the:
A)Cost principle.
B)Time-period assumption.
C)Recognition criteria for revenue.
D)Matching objective.

Question

Quizplus · Accepted Answer

The matching principle (or matching objective) in accounting requires that expenses be matched with the revenues they help to generate. Amortization expense on equipment is recorded to allocate the cost of the equipment over its useful life, matching the expense with the revenue it helps to produce during each period.

The Concept That Requires That Accountants Record Amortization Expense on Equipment