Reasons For Charging Depreciation - SS1 Accounting Past Questions and Answers - page 1

To recognize the gradual loss in value of a tangible asset over time

To increase the value of a tangible asset over time

To recover the cost of a tangible asset all at once

To increase the taxable income of a company

The principle that ensures that the expenses related to an asset are recognized in the same accounting period as the revenue it generates

The principle that allows a company to charge depreciation on an intangible asset

The principle that requires a company to increase the value of a tangible asset over time

The principle that requires a company to recover the cost of a tangible asset all at once

To accurately account for the loss in value of a fixed asset over time

To increase the taxable income of a company

To recover the cost of a fixed asset all at once

To match the expenses associated with an asset with the revenue it generates

It reduces the taxable income of a company

It increases the taxable income of a company

It has no effect on the taxable income of a company

It increases the value of a company's assets

Fixed assets such as buildings, vehicles, equipment, and machinery

Current assets such as cash, inventory, and accounts receivable

Intangible assets such as patents, trademarks, and copyrights

Both fixed and current assets