The Concept of Matching Revenue and Expense Refers to the Fact

question 32

Multiple Choice

The concept of matching revenue and expense refers to the fact that:

• A)expenses incurred during a period equal the revenues earned during the period.
• B)all costs incurred in the process of earning revenues during a period are recorded as expenses in that period.
• C)all cash disbursements during a period are subtracted from all cash receipts during the period.
• D)all costs incurred in the process of earning revenues during a period are deferred and expensed in a future period.

Recognize the methods for measuring NCI at the date of acquisition.

Understand the implications of full goodwill and impairment losses on NCI and parent interest.

Identify the differences between direct and indirect ownership interests within group structures.

Master the adjustment processes for unrealized profits and intragroup transactions in NCI calculations.

---

Definitions:

Sole Proprietorship

A type of business entity that is owned and run by one individual, where there is no legal distinction between the owner and the business.

Benefit Corporation

A type of for-profit corporate entity, recognized by certain US states, that includes positive impact on society, workers, the community, and the environment in addition to profit as its legally defined goals.

Profit

In the context of real property, the right to enter onto another’s property and remove something of value from that property.

Shareholder Benefit

The advantages or profits, such as dividends or increased stock value, that accrue to the owners of shares in a corporation.