CFA Practice Question
An end-of-period adjustment for depreciation of fixed assets is necessary
II. to be consistent with the matching principle
III. to recognize the expense of using fixed assets
I. proper statement of net income
II. to be consistent with the matching principle
III. to recognize the expense of using fixed assets
A. II and III.
B. I and III.
C. I, II and III.
Explanation: An adjustment for depreciation expense matches expenses with revenues for the period , thus contributing to correct statement of net income for the period.
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