1
Question
Which of the following concept forms the basis for depreciation accounting?
Which of the following concept forms the basis for depreciation accounting?
Open in App
Solution
The correct option is B Cost concept
The calculation of depreciation is based upon Cost principle. This principle requires that the depreciation expense reported on the income statement, and the asset amount that is reported on the balance sheet, should be based on the historical (original) cost of the asset.
The calculation of depreciation is based upon Cost principle. This principle requires that the depreciation expense reported on the income statement, and the asset amount that is reported on the balance sheet, should be based on the historical (original) cost of the asset.
Suggest Corrections
0
Similar questions
View More
Join BYJU'S Learning Program
Explore more
Join BYJU'S Learning Program
