Which of the following accounting principles require a business to depreciate a newly purchased Truck over its useful life?
the cost principle |
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the matching principle |
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the revenue recognition principle |
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the going concern principle |
Answer = matching principle
Explanation:
According to matching principle it is required that the asset's cost is allocated over the useful life of the asset. This principle requires a systematic allocation of the cost of the assets to the accounting period over which the cost is used. Hence, the accounting principle that will require a business to depreciation a newly purchased truck over its useful life is matching principle
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