Question

The conceptual rationale for recognition of depreciation expense in the period expected to benefit from these methods are best described by:

a) Matching Principle

b) Materiality Principle

c) Conservatism Principle

d) Going Concern Concept

Answer 1

The conceptual rationale for recognition of depreciation expense is best described by the Matching Principle.

Step-by-step explanation:

The conceptual rationale for recognition of depreciation expense in the period expected to benefit from these methods is best described by the Matching Principle. According to this principle, expenses should be recognized in the same period as the revenues they help generate. By recognizing depreciation expense, a company accurately matches the cost of using an asset with the revenue it generates over its useful life.

Answer 2

The answer of the given statement that "The conceptual rationale for recognition of depreciation expense in the period expected to benefit from these methods are best described by" is a) Matching Principle

Step-by-step explanation:

The conceptual rationale for recognizing depreciation expense in the period expected to benefit from these methods aligns with the Matching Principle.

The Matching Principle is a fundamental accounting concept that dictates the matching of expenses with revenues in the period in which they are incurred, reflecting a more accurate representation of a company's financial performance.

Depreciation is an accounting method used to allocate the cost of a long-term asset (such as machinery or equipment) over its useful life.

By recognizing depreciation expense over the periods in which the asset contributes to revenue generation, the Matching Principle ensures that the associated costs are appropriately matched with the revenue they help generate.

This principle enhances the accuracy and reliability of financial statements by providing a clearer picture of the costs incurred to earn revenue during a specific accounting period.

It is a key element in accrual accounting, allowing for a more realistic depiction of a company's profitability and financial position.

In summary, the correct answer is a) Matching Principle, as it best describes the conceptual rationale for recognizing depreciation expense based on the period of expected benefit.