Vidyalelo
Commerce · Q154

Accounting

Graduate and Post Graduate · Commerce · question 154

Q154

Depreciation is charged on fixed assets to comply with which of the following accounting principle?

A.
Matching concept
Answer
B.
Prudence concept
C.
Timeliness concept
D.
Reliability concept

Answer: Option A

Solution

Answer: Option A
Solution:
Depreciation is charged on fixed assets to comply with Matching concept which requires that revenues must be matched with associated expenses to get a complete and accurate picture of profit and loss.