Which of the following accounting principles requires businesses to record depreciation? Solution 1) Matching principle of accounting requires business to record depreciation for the accounting period . This principle requires that asset cost to be allocated to depreciation expense over the life of the asset.By assigning the portion of asset cost over the life of the asset to various financial statements the accountant is matching the portion of the assets cost with each period in which the asset is used 2) Cost principle:This principle requires that depreciation expense reported on the income statementand the asset cost reported in the balance sheet should be disclosed at the historical cost .