Providing depreciation on fixed assets over its useful life is an application of __

Money measurement

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Matching concept

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Cost concept

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Entity concept

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C Matching concept
Matching concept states that all the expenses of a particular year should be matched with all respective revenue. Therefore, as asset is used during the year therefore, its value is reduced in the form of depreciation.

Suggest Corrections

Similar questions

Q. Depreciating fixed assets over its useful life is an example of which of the following concept/convention ________________.

Q. According to which of the following concepts, fixed assets are depreciated over their useful life rather than over a shorter period on the expectation of early liquidation?

Q. The depreciation is provided taking into consideration the useful ______ life of fixed assets.

___is a method of depreciation, in which the cost of the asset is spread uniformly over the life years by writing off a fixed amount every year, where as in ___ method of depreciation, a fixed rate of depreciation is charged on the book value of the asset over its useful life.

Q. Allocating the cost of an asset over its useful life is an application of __________.

Join BYJU'S Learning Program

Providing depreciation on fixed assets over its useful life is an application of __

The correct option is C Matching conceptMatching concept states that all the expenses of a particular year should be matched with all respective revenue. Therefore, as asset is used during the year therefore, its value is reduced in the form of depreciation.

The correct option is C Matching concept
Matching concept states that all the expenses of a particular year should be matched with all respective revenue. Therefore, as asset is used during the year therefore, its value is reduced in the form of depreciation.