Which of the following serves as the justification for the periodic recording of depreciation expense?
A. Association of efforts (expense) with accomplishments (revenue)
B. Systematic and rational allocation of cost over the periods benefited
C. Immediate recognition of an expense
D. Minimization of income tax liability
Answer:B
Which of the following serves as the justification for the periodic recording of depreciation expense?
A. Association of efforts (expense) with accomplishments (revenue) B. Systematic and rational allocation of cost over the periods benefited C. Immediate recognition of an expense D. Minimization of income tax liability