The accounting matching principle dictates that we:
Answer-
The accounting matching principle dictates that we should match efforts ( expenses) with the accomplishments ( revenue) . Hence this principle directs the company to report an expense on its income statement in the same period as the related revenues.
The accounting matching principle dictates that we:
The revenue recognition principle dictates that revenue should be recognized in the accounting records: O in the period that income taxes are paid. O when cash is received. O when the performance obligation is satisfied. O at the end of the month.
What is depreciation and how does it relate to the matching principle? Is depreciation an exact calculation? If not, what estimates are involved? What happens in the accounting records if we estimate that a car will last for 5 years and it lasts for 7 years?
Explain the revenue recognition principle and the matching principle. Differentiate between the cash basis and the accrual basis of accounting. Explain why adjusting entries are needed and identify the major types of adjusting entries.
Completely and Precisely Define the Following Terms The accrual basis of accounting: The Matching principle: Name and define one type of adjusting entry where cash is paid (or received): Name and Define one type of adjusting entry where cash is paid (or received): Adjusted Trial balance:
What is Accounting principle?Accounting principles are fundamental guidelines that shape the discipline of accounting, providing a structured framework for recording, reporting, and analyzing financial transactions. These principles, integral to maintaining consistency, accuracy, and transparency in financial reporting, include the accrual principle, emphasizing the recording of transactions when they occur rather than when cash changes hands. The consistency principle underscores the importance of applying chosen accounting methods uniformly over time, fostering comparability across financial statements. The materiality principle advocates for the...
Identify the accounting assumption or principle that is described below. (a) select the accounting assumption or principle Going Concern AssumptionMonetary Unit AssumptionPeriodicity AssumptionHistorical Cost PrincipleEconomic Entity AssumptionFull Disclosure Principle Is the rationale for why plant assets are not reported at liquidation value. (Note: Do not use the historical cost principle.) (b) select the accounting assumption or principle Historical Cost PrincipleGoing Concern AssumptionEconomic Entity AssumptionFull Disclosure PrincipleMonetary Unit AssumptionPeriodicity Assumption Indicates that personal and business record-keeping should be separately maintained. (c)...
Which accounting principle supports reporting revenues in the priod they are earned? Select one: a. accounting period b. revenue recognition c. matching d. cash basis
what the matching principle is, and its importance?
What accounting principle state that owner financials should not be intermingled with company finances? O A) Going-concern principle OB) Entity principle OC) Matching principle OD) Cost principle