Princeton Financial Services, Inc. purchased computers that are to be used in its consulting services. Based on the matching principle, what account, other than Computers, should appear on the balance sheet as of December 31, 2018?

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The matching principle requires that expenses be matched with the revenue they generate. Since the computers are expected to be used over several periods, their cost must be allocated over the periods they are used, as depreciation expense. As of December 31, 2018, some of the computers' cost has already been allocated to the current period, and the other portion is still to be allocated. Thus, the balance sheet should show a contra-asset account called Accumulated Depreciation - Equipment, which represents the total amount of depreciation expense recognized on the computers since their purchase. This account is subtracted from the Computers account to derive the net book value of the equipment. The other choices are not relevant in this context.