How is the depreciation process consistent with the matching principle?


a. the accumulated depreciation account is matched with the plant asset account on the balance sheet
b. the cost of consuming plant assets is matched with the periods that benefit from using the assets
c. the book value of the asset is matched with the current market value of the asset
d. the depreciation method used is matched with the expected productivity of the asset

Depreciation and amortization


a. reduce net income and cash flow from operating activities
b. reduce net income but increase cash flow from operating activities
c. reduce net income but have no direct effect on cash flow from operating activities
d. have no direct effect on net income or cash flow from operating activities

Accelerated depreciation



a. results in lower net income in earlier years and higher net income in later years
b. is used more often on the income statement than is the straight-line method
c. leads to higher book values for depreciable assets than does the straight-line method periods than to earlier
d. have no direct effect on net income or cash flow from operating activities

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How is the depreciation process consistent with the matching principle?

b. the cost of consuming plant assets is matched with the periods that benefit from using the assets

Depreciation and amortization

c. reduce net income but have no direct effect on cash flow from operating activities

Accelerated depreciation

a. results in lower net income in earlier years and higher net income in later years