Question

Depreciation Expense is shown on the income statement in order to achieve accounting's matching principle.

True
False

Answer 1

Depreciation Expense is shown on the income statement to achieve accounting's matching principle.

Step-by-step explanation:

Depreciation Expense is shown on the income statement in order to achieve accounting's matching principle. The matching principle states that expenses should be recorded when they are incurred to generate revenues that are reported in the same period. Depreciation is an example of an expense that is matched with the revenue it helps to generate.