The Matching Principle Is Best Demonstrated by

question 28

Multiple Choice

The matching principle is best demonstrated by

• A) not recognizing any expense unless some revenue is realized.
• B) associating effort (expense) with accomplishment (revenue).
• C) recognizing prepaid rent received as revenue.
• D) measuring expenses correctly.

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Definitions:

Unit-elastic

Unit-elastic describes a situation where a change in price leads to an equivalent proportional change in quantity demanded or supplied, resulting in no revenue change for the seller.

Wage Increase

An upward adjustment in the amount of earnings a worker receives for their labor.

Elasticity of Resource Demand

A measure of how the quantity demanded of a resource changes in response to a change in price.

Resource Prices

The cost of inputs used in the production of goods and services, such as labor, capital, land, and raw materials.