Question

A freshman at Brightest College is seeking your help on revenue and expense recognition and measurement criteria. Help match each of the items below to the appropriate principle. The company transferred the promised goods or performed the promised service to customers. Choose... Revenue should be recorded in the amount the company receives or expects to receive from the transaction Choose... The company paid $500,000 to purchase inventory in January, and sold all the inventory in the month of March. The $500,000 inventory cost must be recorded as cost of goods sold in Choose... the income statement in the month of March, NOT in the month of January. In the month of January, the company incurred $1 million in salary expense for the C.E.O. The company did not earn any revenue until the month of March; nonetheless, the accountant Choose... recorded the $1 million C.E.O salary as an expense in the income statement in the month of January Revenue and expenses are recognized in the income statement at the same period when the Choose... transaction that causes them occurs. Cash accounting Determine the transaction price Accruals accounting Revenue measurement Revenue is earned Product or service delivery Matching principle for period cost Matching principle for product cost ge

Answer 1

1 Solution 2 1 Product or service delivery - To transfer promised goods or sevices to customer 3 2 Determine the transection price - It is an estimated amount business suppose to receive. 4 3 Matching principle of product cost - Matching cost with cost of goods sold. 5 4 Accrual accounting - Recording revenue and expenses when they are incurred. 6 5 Matching principle of period cost - Matching revenue and expenses incurred during a specific period to know the result. 7 8 9 NOTE - PLEASE UPVOTE IT SHALL BE A GREAT FAVOR THANKS 10 11 12 13