Section 1-DEPRECIATION ON THE FINANCIAL STATEMENTS V. 1. 2. 3. 4. 5. a. b. C. d. a. b. c. d. a. b. C. d. TAX RETURN The cost of a plant asset is recognized: when it is paid for. as it yields benefits to the company. in the period in which it is acquired. in the period in which it is sold. Depreciation expense: must be computed annually, but may also be computed for shorter periods may be computed either annually or for shorter periods, but not both must be computed once over the life of the asset may be computed either annually or once over the life of the asset The purpose of depreciation is to: provide a tax deduction over several years. match an asset's cost per year to the depreciable base divided by the number of years the asset is expected to be in service. match an asset's cost to the revenue that the asset helps the company produce each year. none of the above. Which of the following statements about the accumulated depreciation account is correct? a. It appears on the balance sheet and represents the total depreciation expense taken in the current year. b. C. d. It appears on the balance sheet and represents the total depreciation expense taken in all years to date. It appears on the income statement and represents the total depreciation expense taken in the current year. It appears on the income statement and represents the total depreciation expense taken in all years to date. When a CPA examines a company's financial statements and expresses an opinion on whether they materially conform to GAAP rules, this service is referred to as a(n): a. compilation b. audit C. review d. none of the above