Explain the meaning of the "matching concept."
What will be an ideal response?
The "matching concept" refers to the process of "matching" the expenses with the revenues that they produce in the appropriate time period. This matching is largely done through the adjusting process. For example, the accrual of salary expense has the effect of matching the correct portion of salary expense to the accounting period in which the employees contributed to producing revenue. Matching means that expenses should be recognized in the same accounting period as the revenues that they helped a business to earn.
The matching concept is the foundation of accrual accounting - the recognition of revenues as they are earned and expenses as they are incurred, regardless of when cash is exchanged.
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Which of the following is a major disadvantage of using the Internet as a marketing channel?
A) It is less effective for complex products. B) It lacks convenience and practicality. C) It cannot be used to reach a wide audience. D) It is considered expensive. E) It causes the company to lose direct contact with customers.
Which of the following would have the least likelihood of being treated as an extraordinary item?
a. Uninsured loss from earthquake b. Gain or loss on sale of equipment c. Gain or loss arising from enactment of new law d. Uninsured loss from fire
Overhead costs generally are estimated as part of the normal budgeting function
Indicate whether the statement is true or false
Describe the continuity and pulsing advertisement schedules
What will be an ideal response?