Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 9, Problem 2MC
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.
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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
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.
Discuss the importance of the matching principle in determining the timing and recognition of revenues and expenses.
Chapter 9 Solutions
Principles of Accounting Volume 1
Ch. 9 - Which of the following is not a criterion to...Ch. 9 - Which of the following best represents the...Ch. 9 - If a customer pays with a credit card and the...Ch. 9 - A car dealership sells a car to a customer for...Ch. 9 - Tines Commerce computes bad debt based on the...Ch. 9 - Doer Company reports year-end credit sales in the...Ch. 9 - Balloons Plus computes bad debt based on the...Ch. 9 - Conner Pride reports year-end credit sales in the...Ch. 9 - Which method delays recognition of bad debt until...Ch. 9 - Which of the following estimation methods...
Ch. 9 - Which of the following best represents a positive...Ch. 9 - South Rims has an accounts receivable balance at...Ch. 9 - What information can best be elicited from a...Ch. 9 - Ancient Grains Unlimited has an accounts...Ch. 9 - Which of the following is not a way to manage...Ch. 9 - Which of the following is true about earnings...Ch. 9 - Which statement is most directly affected by a...Ch. 9 - Michelle Company reports $345,000 in credit sales...Ch. 9 - Which of the following is true of a maturity date?...Ch. 9 - Mark Industries issues a note in the amount of...Ch. 9 - A customer takes out a loan of $130,000 on January...Ch. 9 - A company collects an honored note with a maturity...Ch. 9 - Orion Rentals is unable to collect on a note worth...Ch. 9 - What is the matching principle?Ch. 9 - A beverage wholesale outlet sells beverages by the...Ch. 9 - On January 1, a flower shop contracts with...Ch. 9 - American Signs allows customers to pay with their...Ch. 9 - Which account type is used to record bad debt...Ch. 9 - Earrings Depot records bad debt using the...Ch. 9 - Racing Adventures records bad debt using the...Ch. 9 - Aron Larson is a customer of Bank Enterprises. Mr....Ch. 9 - The following accounts receivable information...Ch. 9 - What are bad debts?Ch. 9 - What are some possible negative signals when the...Ch. 9 - Berry Farms has an accounts receivable balance at...Ch. 9 - What are the two most common receivables ratios,...Ch. 9 - What is the difference between earnings management...Ch. 9 - What is an earnings management benefit from...Ch. 9 - Angelos Outlet used to report bad debt using the...Ch. 9 - What is an earnings management benefit from...Ch. 9 - What are the two methods of revenue recognition...Ch. 9 - What is the installment method?Ch. 9 - What is a possible ramification of deferred...Ch. 9 - What is the completed contract method?Ch. 9 - What is the percentage of completion method?Ch. 9 - British Imports is unable to collect on a note...Ch. 9 - Chemical Enterprises issues a note in the amount...Ch. 9 - What is the principal of a note?Ch. 9 - A customer was unable to pay the accounts...Ch. 9 - What are three differences between accounts...Ch. 9 - Prepare journal entries for the following...Ch. 9 - Prepare journal entries for the following...Ch. 9 - Consider the following transaction: On March 6,...Ch. 9 - Window World extended credit to customer Nile...Ch. 9 - Millennium Associates records bad debt using the...Ch. 9 - Millennium Associates records bad debt using the...Ch. 9 - The following accounts receivable information...Ch. 9 - Using the following select financial statement...Ch. 9 - Using the following select financial statement...Ch. 9 - Millennial Manufacturing has net credit sales for...Ch. 9 - Mirror Mart uses the balance sheet aging method to...Ch. 9 - Aerospace Electronics reports $567,000 in credit...Ch. 9 - Dortmund Stockyard reports $896,000 in credit...Ch. 9 - Arvan Patel is a customer of Banks Hardware Store....Ch. 9 - Resin Milling issued a $390,500 note on January 1,...Ch. 9 - Mystic Magic issued a $120,250 note on January 1,...Ch. 9 - Prepare journal entries for the following...Ch. 9 - Prepare journal entries for the following...Ch. 9 - Consider the following transaction: On February...Ch. 9 - Laminate Express extended credit to customer Amal...Ch. 9 - Olena Mirrors records bad debt using the...Ch. 9 - Olena Mirrors records bad debt using the...Ch. 9 - The following accounts receivable information...Ch. 9 - Using the following select financial statement...Ch. 9 - Using the following select financial statement...Ch. 9 - Starlight Enterprises has net credit sales for...Ch. 9 - Outpost Designs uses the balance sheet aging...Ch. 9 - Clovis Enterprises reports $845,500 in credit...Ch. 9 - Fortune Accounting reports $1,455,000 in credit...Ch. 9 - Anderson Air is a customer of Handler Cleaning...Ch. 9 - Rain T-Shirts issued a $440,600 note on January 1,...Ch. 9 - Element Surfboards issued a $210,800 note on...Ch. 9 - Prepare journal entries for the following...Ch. 9 - Prepare journal entries for the following...Ch. 9 - Prepare journal entries for the following...Ch. 9 - Jars Plus recorded $861,430 in credit sales for...Ch. 9 - The following accounts receivable information...Ch. 9 - Funnel Direct recorded $1,345,780 in credit sales...Ch. 9 - Review the select information for Bean Superstore...Ch. 9 - The following select financial statement...Ch. 9 - Noren Company uses the balance sheet aging method...Ch. 9 - Elegant Universal uses the balance sheet aging...Ch. 9 - Record journal entries for the following...Ch. 9 - Record journal entries for the following...Ch. 9 - Record journal entries for the following...Ch. 9 - Record journal entries for the following...Ch. 9 - Organics Plus is considering which bad debt...Ch. 9 - Prepare journal entries for the following...Ch. 9 - Prepare journal entries for the following...Ch. 9 - Prepare journal entries for the following...Ch. 9 - Bristax Corporation recorded $1,385,660 in credit...Ch. 9 - The following accounts receivable information...Ch. 9 - Ink Records recorded $2,333,898 in credit sales...Ch. 9 - Review the select information for Liquor Plaza and...Ch. 9 - The following select financial statement...Ch. 9 - Elegant Linens uses the balance sheet aging method...Ch. 9 - Goods for Less uses the balance sheet aging method...Ch. 9 - Record journal entries for the following...Ch. 9 - Record journal entries for the following...Ch. 9 - Record journal entries for the following...Ch. 9 - Record journal entries for the following...Ch. 9 - Shimmer Products is considering which bad debt...Ch. 9 - Review the new revenue recognition guidance issued...Ch. 9 - You are considering two possible companies for...Ch. 9 - You own a construction company and have recently...Ch. 9 - When a customer is delinquent on paying a notes...
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Similar questions
- Which of the following principles matches expenses with associated revenues in the period in which the revenues were generated? A. revenue recognition principle B. expense recognition (matching) principle C. cost principle D. full disclosure principlearrow_forwardThe __________ 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 conceptarrow_forwardThe primary objective of the matching principle is toa. Provide full disclosureb. Record expenses in the period that related revenues are recognizedc. Provide timely information to decision makersd. Promote comparability between financial statements of different periodsarrow_forward
- Recording advertising expense complies with which of the following methods of the Matching Principle? Group of answer choices A. Percentage of completion B. Immediate recognition C. Associating cause and effect D. Systematic and rational allocationarrow_forwardWhich of the following conditions would violate the revenue recognition principle? Revenue is recognized when related costs can reliably be measured. Revenue is recognized when delivery has occurred or services have been provided. Revenue is recognized when collection is possible. Revenue is recognized when the seller’s price to the buyer is fixed and determinable.arrow_forwardUnder the U.S. GAAP, which of the following is not an approach used to determine when to report an expense? A. match with revenues B. when incurred C. systematic allocation D. net realizable valuearrow_forward
- Revenue can be recognized when all of the following criterias are met EXCEPT There is credible evidence that an arrangement exists. Goods have been delivered or services have been performed. The selling price or fee to the buyer is fixed or can be reasonably determined. All of these are correctarrow_forwardWhich accounting principle requires that bad debts expense be recognized in the same period as the sale? A) Measurement principle B) Expense Recognition (Matching) principle C) Revenue Recognition principle D) Historical Cost principle Please answer ASAP, I will upvotearrow_forwardThe third step in the process for revenue recognition is to (Enter 1, 2, 3, or 4 that represents the correct answer): determine the separate performance obligations in the contract. allocate transaction price to the separate performance obligations. determine the transaction price. determine the amount of revenue when each performance obligation is satisfied.arrow_forward
- Which one of the following recognises the idea that assets and income should not be overstated while liabilities and expenses should not be understated :A. Matching principle,B. Accrual concept,C. Principle of prudence.D. Consistency concept.arrow_forwardWhich of the following is the principle that a company must recognize revenue in the period in which it is earned; it is not considered earned until a product or service has been provided? A. revenue recognition principle B. expense recognition (matching) principle C. cost principle D. full disclosure principlearrow_forwardWhich of the following is not a criterion to recognize revenue under GAAP? A. The earnings process must be completed. B. A product or service must be provided. C. Cash must be collected. D. GAAP requires that the accrual basis accounting principle be used in the revenue recognition process.arrow_forward
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