The matching principle requires matching expenses incurred during an accounting period with the revenue earned during the previous period. True False
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- 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 principleT/F: The matching principle requires that expenses be recorded in the same period as the revenues they help generate.Which of the following principles matches expenses with associated revenues in the period in which the revenues were generated? Group of answer choices 1.revenue recognition principle 2.expense recognition (matching) principle 3.cost principle 4.full disclosure principle
- What is false about the matching principle? a. Incurred expenses should be matched with earned revenues. b. It supports accrual accounting principles. Matches assets with liabilities d. It is in accordance with the Internatidwal Financial Reporting Standards.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 practice of recording advance payments from customers as a liability is an example of applying the O Going concern assumption. O Monetary unit assumption. O Historical cost principle. Revenue recognition principle.
- Revenues and expenses should be recorded in the same period to which they relate. True FalseThe expense recognition principle (“matching”) controlsa. Where on the income statement expenses should bepresented.b. When revenues are recognized on the incomestatement.c. The ordering of current assets and current liabilities onthe balance sheet.d. When costs are recognized as expenses on the incomestatement.Under the Revenue Recognition Principle in IFRS, revenue is recognized in the accounting period when the performance obligation is satisfied. O True False
- answer true or false: 1. Revenue collected in advance of being earned represents a liability until it is earned. 2. The matching principle states that expenses are recognized when incurred in generating revenue.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.Unearned income is credited to the Profit and loss account. Do you agree with the statement?