The concept of depreciation is best explained by which accounting principle or assumption?
A) Cost principle.
B) Going concern assumption.
C) Expense recognition.
D) Economic entity assumption.

Question

Quizplus · Accepted Answer

Depreciation is best explained by the expense recognition principle, also known as the matching principle. This principle states that expenses should be recognized in the period in which they are incurred to generate revenues, aligning the cost of an asset with the revenue it generates over its useful life.

The Concept of Depreciation Is Best Explained by Which Accounting