Recording deprecation each period is necessary in accordance with what a going concerned principle B historical cost principle see a set valuation principal or de expense recognition principal
Added by Isaac B.
Step 1
The question is asking about the principle that requires recording depreciation each period in accounting. Show more…
Show all steps
Your feedback will help us improve your experience
James Kiss and 87 other Principles of Accounting educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Recommended Videos
Expensing the cost of a wastebasket with an estimated useful life of 10 years when purchased is an example of the application of the Select answer from the options below expense recognition principle. materiality ingredient. consistency characteristic. historical cost principle.
James K.
Match the situation with the best term to explain why things are done this way. 1. Every year a business uses the same account names so it can evaluate results between years. 2. When we prepare a financial statement, we show all assets at the price we paid for them. 3. A business should not spend $1,000 on counting and recounting $500 worth of inventory. 4. If we record a truck on the financial statement at the price we could get for it if we tried to sell it quickly, we are violating this accounting assumption. 5. We try to include information in the accounting records such that financial statements provide enough information for readers to make an investment decision. 6. A car dealership will report profits for the parts department separate from the service department so that senior management can see how well each part of their business is doing. a. Historic cost principle b. Going concern assumption c. Relevance characteristic d. Cost-benefit constraint e. Economic entity assumption f. Comparability characteristic
Madhur L.
In depreciating the cost of an asset, accountants are most concerned with: a. Conservatism b. Recognizing revenue in the appropriate period c. Full disclosure d. Recognizing expense in the appropriate period
Sanchit J.
Recommended Textbooks
Horngren’s Cost Accounting
Cost Accounting A Managerial Emphasis
Principles of Accounting Volume 1: Financial Accounting
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD