Question

1. Which generally accepted accounting principle (GAAP) requires the use of depreciation for assets that have useful lives beyond one year

Answer 1

Answer:

matching principle

Explanation:

The matching principle in accounting basically states that you must record expenses or costs in the same period as you record revenues associated to them. I.e. the use of assets generates revenue, therefore, you must expense that use at the same time when you record revenues.

US GAAP accepts 4 depreciation methods:

1. Straight line method
2. Declining balance method
3. Units of production method
4. Sum of years' digits