Explain why we depreciate assets over their useful lives instead of just expensing them in the year they are acquired?

Question

Quizplus · Accepted Answer

The Answer is The matching principle requires it because the asset allows the organization to generate revenues over many years. Depreciation spreads out the acquisition cost and allows revenues and expenses to be appropriately matched throughout the life of the asset.

Explain Why We Depreciate Assets Over Their Useful Lives Instead