Question

Which of the following accounting principles require a business to depreciate a newly purchased Truck over...

Which of the following accounting principles require a business to depreciate a newly purchased Truck over its useful life?

the cost principle

the matching principle

the revenue recognition principle

the going concern principle
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Answer #1

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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