Which of the Following Represents a Use of the Matching

question 304

Multiple Choice

Which of the following represents a use of the matching principle in accounting?

• A) The cost of purchasing an item on account is recorded when the payable is paid.
• B) Revenues from a credit sale are recorded when the receivable is received.
• C) The production costs of inventory are recorded along with the revenue from the sale on the date the sale is made.
• D) Costs are recorded as fixed or variable on the date of the transaction.
• E) Revenues are recorded when cash is received, and costs recorded when payments are made.

---

Definitions:

Noncompetitive

Refers to a market situation where businesses face little to no competition, either due to monopolistic conditions or because they offer a unique product or service.

Complementary Merchandise

Products that are sold together or used jointly because they complement each other.

Broker

An individual or firm that acts as an intermediary, facilitating transactions between buyers and sellers for a fee or commission.

Internet Company

A business that primarily operates online, providing products or services through the web.