Recording periodic depreciation on assets such as buildings or machinery is an application of the:
A) cost principle.
B) materiality constraint.
C) unit-of-measure assumption.
D) matching principle.
E) conservatism constraint.

Question

Quizplus · Accepted Answer

The matching principle states that expenses should be recognized in the same accounting period as the revenue they help to generate. Recording periodic depreciation on assets such as buildings or machinery follows this principle by recognizing the gradual decrease in the value of the asset over time as an expense.

Recording Periodic Depreciation on Assets Such as Buildings or Machinery