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Business

Accounting

T/F: The matching principle requires that expenses be recorded in the same period as the revenues they help generate.

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter6: Work Sheet And Adjusting Entries For A Service Business

Section6.2: Planning Adjusting Entries On A Work Sheet

Problem 1AYU

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The __________ requires that expenses be matched up with revenue for the same period of time. a. matching principle b. expense principle c. revenue recognition principle d. separate entity concept
Which of the following best represents the matching principle criteria? A. Expenses are reported in the period in which they were incurred. B. Expenses may be reported in a different period than the matching revenues. C. Revenue and expenses are matched based on when expenses are paid. D. Revenue is recognized when an order occurs and not when the actual sale is initiated.
Discuss the importance of the matching principle in determining the timing and recognition of revenues and expenses.
The expense matching principle states that: Multiple Choice Expenses are recognized when paid. All expenses are recognized when the corresponding revenue is recorded. Some expenses are recognized when the corresponding revenue is recognized and some are spread over time. Expenses are recognized when the invoice is received.
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dentify whether each of the following transactions, which are related to revenue recognition, are accrual, deferral, or neither. expense now, pay now expense later, pay now expense now, pay later