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 for a period equal the revenues for 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)costs incurred in the process of earning revenues during a period are deferred and expensed in a future period.

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Definitions:

Joint Venture

A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task.

Sole Proprietorship

A business owned and operated by one individual, where there is no legal distinction between the owner and the business entity.

Competitor

A person or organization that is in the same industry or field and is in competition for the same market share.

Robinson-Patman Act

A 1936 U.S. law aimed at preventing anticompetitive practices by producers, specifically price discrimination.