Which accounting principle directs the depreciation process?

Question

Quizplus · Accepted Answer

The matching principle directs the depreciation process, which requires the cost of a long-term asset to be matched with the revenues it generates over its useful life. This means that the cost of the asset is allocated over its estimated useful life in a systematic and rational manner (i.e. through depreciation) to match the expenses incurred with the income earned from using the asset.

Which Accounting Principle Directs the Depreciation Process