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Homework answers / question archive / Recording depreciation each period is necessary in accordance with what?

Recording depreciation each period is necessary in accordance with what?

Accounting

Recording depreciation each period is necessary in accordance with what?

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Accounting for the use of an asset over its lifetime is recording depreciation. Recording depreciation needs to be done each period in accordance with the matching principle that states expenses that are associated with revenues must be recorded in the same period. To do this, accountants create a depreciation table and divide the cost of use (Acquisition Value - Salvage Value) over the lifetime of the asset and record those increments in depreciation each period the asset is in service.