Sally Lee, a professional accountant, owns a computer used for the company's business. The matching objective requires that which of the following accounts appears on the income statement for the year ended December 31?
A)Amortization expense, computer
B)Accumulated amortization, computer
C)Depreciation receivable, computer
D)Depreciation payable, computer

Question

Quizplus · Accepted Answer

The matching principle in accounting states that expenses should be recorded in the period in which they are incurred to generate revenues. Therefore, the amortization expense for the computer, which is a way to allocate the cost of the asset over its useful life, should appear on the income statement to match the expense with the revenue it helps to generate.

Sally Lee, a Professional Accountant, Owns a Computer Used for the Company's