Fixed Asset Accountant Mock Interview

Master 30 Fixed Asset Accountant interview questions covering depreciation, capitalization policies, and reconciliations.

Question 12 of 30

How are fixed asset purchases accounted for to comply with the matching principle (recognizing expense in the period incurred)?

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Brian Schuchart

Brian Schuchart is a CPA and Senior Finance Business Partner. His professional experience includes senior management roles with NBC Sports, Virtual Health, and the Children's Hospital of Philadephia.

This is a question that gauges whether you understand why depreciation expense is recorded for fixed assets. Depreciation expense is recognized evenly over the useful life of a fixed asset so that a proportionate expense is recorded in each period the asset is in use.

Brian Schuchart

Brian Schuchart is a CPA and Senior Finance Business Partner. His professional experience includes senior management roles with NBC Sports, Virtual Health, and the Children's Hospital of Philadephia.

"Fixed assets are unique in that they are purchased at a given time, but used for years and sometimes decades after purchase. To align with accrual accounting principles, an accountant must estimate the useful life of a fixed asset in months. Then, each month a proportionate depreciation expense is recognized for each period an asset is in use."

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