Q154
Depreciation is charged on fixed assets to comply with which of the following accounting principle?
A.
Matching concept
AnswerB.
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.