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) An accrued account.
C) A contra account.
D) Depreciation expense.
E) The expense recognition (matching) principle.

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 known as depreciation expense. This expense represents the cost of using the assets and is recorded in the income statement. Choices A, B, C, and E are not correct as they do not describe the specific expense being referred to in the question.

The Periodic Expense Created by Allocating the Cost of Plant