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.

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Definitions:

Work Environments

The setting or conditions in which an organization's employees operate, including physical, social, and psychological aspects.

Not-for-profit Organisation

An entity that operates for purposes other than making a profit, focusing instead on social, educational, charitable, or other community-oriented goals.

Red Tape

Excessive bureaucracy or adherence to formal rules and regulations that can delay or complicate processes and decision-making.

Bureaucratic Organisation

A type of organizational structure that operates under a fixed set of rules and procedures, often with a hierarchical system of administration.