New SEBI Grade A IT Stream New Batch Starts on Nov 30. Click Here to Enroll

    Register

    Question

    Depreciation is charged as per which principle?

    A Prudence Correct Answer Incorrect Answer
    B Going Concern Correct Answer Incorrect Answer
    C Consistency Correct Answer Incorrect Answer
    D Matching Correct Answer Incorrect Answer
    E Dual Aspect Correct Answer Incorrect Answer

    Solution

    Depreciation is the value which is written off out of the wear and tear of a Non-Current Asset. Since the asset is used across the useful life of the asset, therefore, the revenues generated should be matched with the expenses incurred across the useful life.

    Practice Next