The Broad Principle That Requires Expenses to Be Reported in the Same

question 123

Multiple Choice

The broad principle that requires expenses to be reported in the same period as the revenues that were earned as a result of the expenses is the

• A) Revenue recognition principle
• B) Cost principle
• C) Cash basis of accounting
• D) Matching principle
• E) Timeliness principle

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Definitions:

Thompson's Classification

A framework for analyzing organizations based on three types of interdependencies: pooled, sequential, and reciprocal.

Woodward's Classification

A framework for classifying industrial organizations based on the complexity of the technology used in the production process.

Information Technology (IT)

The use of computers, networking, storage, and other physical devices, infrastructure, and processes to create, process, store, secure, and exchange all forms of electronic data.

Capability

The ability or power to do something effectively or to achieve a particular outcome.