Discuss the importance of the matching principle in accounting. How does it influence the preparation of financial statements, and what are the potential consequences of failing to apply this principle correctly?
Accounting
Question: A company purchases office equipment for $12,000 on January 1, 2024. The equipment has an estimated salvage value of $2,000 and a useful life of 5 years. Using the straight-line method, calculate: (a) The annual depreciation expense. (b) The book value of the equipment at the end of the