The Matching Principle Requires That Revenue Be Assigned to the Accounting

question 199

True/False

The matching principle requires that revenue be assigned to the accounting period in which it is earned.

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Definitions:

Rate Of Return

Earning or losing money on an investment throughout a specific timespan, represented as a portion of the investment's original cost.

Insurance Company

An organization that provides risk management by offering policyholders compensation in the event of specific losses, damage, illness, or death, in return for premium payments.

Offer

A proposal to sell or buy a specific asset or service at a specified price and terms.

Annual Percentage Rate

The annual rate charged for borrowing or earned through an investment, accounting for compounding interest over the course of the year.