Which of the Following Illustrates the Matching Principle

question 77

Multiple Choice

Which of the following illustrates the matching principle?

• A)Expensing the cost of an item sold at the same as the revenue is recognized.
• B)Expensing a fixed asset when purchased.
• C)Expensing a fixed asset at the end of its useful life.
• D)Waiting until the cash is collected before recognizing revenue.

Calculate equivalent annual rates of return on investments.

Determine the effective rate of interest for different compounding periods.

Analyze and compare different interest rates to make informed financial decisions.

Comprehend the impact of changes in periodic interest rates on the effective annual rate.