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The Matching Principle Requires That Revenue Not Be Assigned to the Accounting

question 187

True/False

The matching principle requires that revenue not be assigned to the accounting period in which it is earned.


Definitions:

Present Value

The present-day valuation of a future sum of money or cash flow series, assuming a particular rate of earnings.

Compound Interest

Interest that is computed on both the original principal amount and the interest that has been added to it from past periods, for either a loan or deposit.

Future Value

The value of a current asset at a specified date in the future based on an assumed rate of growth or return.

Present Value

Today's equivalent value of a forthcoming sum of money or stream of payments, according to a specified interest rate.

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