Answer-Depreciation is charged on __________ as per the ___________ of accounting.

Non-Current assets like fixed assets are a result of Capital Expenditures. Depreciation is charged on long term fixed assets. Since the Non-Current Assets give the benefits for more than one year therefore, the cost cannot be taken as expense in the year of acquisition. As such, the matching concept is applied to charge depreciation over the useful life of the non-current asset.

Question

Depreciation is charged on __________ as per the

___________ of accounting.

A Capital Receipts, accrual concept

B Capital Expenditures, matching concept

C Revenue Receipts , prudence concept

D Revenue Expenditure, going concern concept

E Revenue expense, business entity concept

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