Which of the following statements is true concerning the matching principle?
a. All costs can be directly matched with revenue.
b. All costs can be indirectly matched with periods in which they provide a benefit.
c. The association of assets for a period with the liabilities necessary to generate the assets is known as the matching principle.
d. Cost of goods sold matched with sales revenue is a classic example of direct matching under the matching principle.
d
You might also like to view...
As a general rule, revenue is recognized at the point of sale. Which one of the following situations illustrates this rule?
a. Products are sold to customers on credit with payment due in 30 days. b. Employees are paid wages the week after the wages are earned. c. Products are purchased for resale purposes. d. Interest is collected from amounts loaned to employees.
Income taxes payable is a current liability
a. True b. False Indicate whether the statement is true or false
The tort of defamation of character requires a plaintiff to prove that the defendant ________.
A. publicized a private fact about the plaintiff B. insulted people closely related to the plaintiff, such as family or friends C. published an untrue statement of fact about the plaintiff to a third party D. made one or more financial deals with the plaintiff under a false identity
Discuss the differences between public and private law