Jas Singh owns a construction business. Which of the following principles/objectives/assumptions requires the equipment used in the business to be amortized?
A)revenue recognition principle
B)the reliability characteristic
C)stable-monetary unit assumption
D)matching objective

Question

Quizplus · Accepted Answer

The matching objective in accounting requires that expenses be matched with the revenues they help to generate. Amortization of equipment spreads the cost of the equipment over its useful life, aligning the expense with the revenue it helps to produce.

Jas Singh Owns a Construction Business